Correlation Between US Foods and Celsius Holdings

Can any of the company-specific risk be diversified away by investing in both US Foods and Celsius Holdings 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 US Foods and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US Foods Holding and Celsius Holdings, you can compare the effects of market volatilities on US Foods and Celsius Holdings 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 US Foods with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Foods and Celsius Holdings.

Diversification Opportunities for US Foods and Celsius Holdings

0.53

Correlation Coefficient

US Foods  Celsius Holdings

Very weak diversification

The 3 months correlation between USFD and Celsius is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding US Foods Holding and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and US Foods 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 US Foods Holding are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of US Foods i.e., US Foods and Celsius Holdings go up and down completely randomly.

Pair Corralation between US Foods and Celsius Holdings

Given the investment horizon of 90 days US Foods Holding is expected to generate 0.37 times more return on investment than Celsius Holdings. However, US Foods Holding is 2.74 times less risky than Celsius Holdings. It trades about -0.01 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.14 per unit of risk. If you would invest  7,776  in US Foods Holding on August 26, 2025 and sell it today you would lose (112.00) from holding US Foods Holding or give up 1.44% of portfolio value over 90 days.

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

US Foods Holding  vs.  Celsius Holdings

US Foods Holding

Risk-Adjusted Performance

Weakest

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

Celsius Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Celsius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with US Foods and Celsius Holdings

The main advantage of trading using opposite US Foods and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Foods position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.

The idea behind US Foods Holding and Celsius Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.