Correlation Between Mobilicom Limited and Barry Callebaut

Can any of the company-specific risk be diversified away by investing in both Mobilicom Limited and Barry Callebaut 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 Mobilicom Limited and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mobilicom Limited Warrants and Barry Callebaut AG, you can compare the effects of market volatilities on Mobilicom Limited and Barry Callebaut 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 Mobilicom Limited with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilicom Limited and Barry Callebaut.

Diversification Opportunities for Mobilicom Limited and Barry Callebaut

-0.58

Correlation Coefficient

Mobilicom Limited  Barry Callebaut

Excellent diversification

The 3 months correlation between Mobilicom and Barry is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mobilicom Limited Warrants and Barry Callebaut AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barry Callebaut AG and Mobilicom Limited 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 Mobilicom Limited Warrants are associated (or correlated) with Barry Callebaut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barry Callebaut AG has no effect on the direction of Mobilicom Limited i.e., Mobilicom Limited and Barry Callebaut go up and down completely randomly.

Pair Corralation between Mobilicom Limited and Barry Callebaut

Assuming the 90 days horizon Mobilicom Limited Warrants is expected to under-perform the Barry Callebaut. In addition to that, Mobilicom Limited is 7.42 times more volatile than Barry Callebaut AG. It trades about -0.02 of its total potential returns per unit of risk. Barry Callebaut AG is currently generating about -0.02 per unit of volatility. If you would invest  135,328  in Barry Callebaut AG on December 20, 2024 and sell it today you would lose (5,499) from holding Barry Callebaut AG or give up 4.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	72.88%
Values	Daily Returns

Mobilicom Limited Warrants  vs.  Barry Callebaut AG

Mobilicom Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobilicom Limited Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Barry Callebaut AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Barry Callebaut AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Barry Callebaut is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mobilicom Limited and Barry Callebaut

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

The idea behind Mobilicom Limited Warrants and Barry Callebaut AG 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.