Correlation Between OFFICIAL TRUMP and Celestia

Can any of the company-specific risk be diversified away by investing in both OFFICIAL TRUMP and Celestia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining OFFICIAL TRUMP and Celestia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OFFICIAL TRUMP and Celestia, you can compare the effects of market volatilities on OFFICIAL TRUMP and Celestia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OFFICIAL TRUMP with a short position of Celestia. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICIAL TRUMP and Celestia.

Diversification Opportunities for OFFICIAL TRUMP and Celestia

0.91

Correlation Coefficient

OFFICIAL TRUMP  Celestia

Almost no diversification

The 3 months correlation between OFFICIAL and Celestia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding OFFICIAL TRUMP and Celestia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestia and OFFICIAL TRUMP is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OFFICIAL TRUMP are associated (or correlated) with Celestia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestia has no effect on the direction of OFFICIAL TRUMP i.e., OFFICIAL TRUMP and Celestia go up and down completely randomly.

Pair Corralation between OFFICIAL TRUMP and Celestia

Assuming the 90 days trading horizon OFFICIAL TRUMP is expected to generate 0.94 times more return on investment than Celestia. However, OFFICIAL TRUMP is 1.07 times less risky than Celestia. It trades about -0.02 of its potential returns per unit of risk. Celestia is currently generating about -0.03 per unit of risk. If you would invest  1,335  in OFFICIAL TRUMP on April 24, 2025 and sell it today you would lose (224.00) from holding OFFICIAL TRUMP or give up 16.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

OFFICIAL TRUMP  vs.  Celestia

OFFICIAL TRUMP

Risk-Adjusted Performance

Very Weak

Over the last 90 days OFFICIAL TRUMP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, OFFICIAL TRUMP is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Celestia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Celestia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Celestia shareholders.

Pair Trading with OFFICIAL TRUMP and Celestia

The main advantage of trading using opposite OFFICIAL TRUMP and Celestia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICIAL TRUMP position performs unexpectedly, Celestia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Celestia will offset losses from the drop in Celestia's long position.

The idea behind OFFICIAL TRUMP and Celestia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.