Correlation Between Vontobel Holding and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both Vontobel Holding 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 Vontobel Holding and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vontobel Holding and Barry Callebaut AG, you can compare the effects of market volatilities on Vontobel Holding 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 Vontobel Holding with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontobel Holding and Barry Callebaut.
Diversification Opportunities for Vontobel Holding and Barry Callebaut
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vontobel and Barry is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vontobel Holding 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 Vontobel Holding 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 Vontobel Holding 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 Vontobel Holding i.e., Vontobel Holding and Barry Callebaut go up and down completely randomly.
Pair Corralation between Vontobel Holding and Barry Callebaut
Assuming the 90 days trading horizon Vontobel Holding is expected to generate 1.12 times less return on investment than Barry Callebaut. But when comparing it to its historical volatility, Vontobel Holding is 1.56 times less risky than Barry Callebaut. It trades about 0.03 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 117,483 in Barry Callebaut AG on December 30, 2024 and sell it today you would earn a total of 1,417 from holding Barry Callebaut AG or generate 1.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Vontobel Holding vs. Barry Callebaut AG
Performance |
Timeline |
Vontobel Holding |
Barry Callebaut AG |
Vontobel Holding and Barry Callebaut Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vontobel Holding and Barry Callebaut
The main advantage of trading using opposite Vontobel Holding and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontobel Holding 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.Vontobel Holding vs. Julius Baer Gruppe | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding vs. Sulzer AG | Vontobel Holding vs. Swiss Life Holding |
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Check out your portfolio center.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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