Correlation Between Ares Acquisition and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both Ares Acquisition 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 Ares Acquisition and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ares Acquisition and Barry Callebaut AG, you can compare the effects of market volatilities on Ares Acquisition 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 Ares Acquisition with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ares Acquisition and Barry Callebaut.
Diversification Opportunities for Ares Acquisition and Barry Callebaut
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ares and Barry is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ares Acquisition 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 Ares Acquisition 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 Ares Acquisition 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 Ares Acquisition i.e., Ares Acquisition and Barry Callebaut go up and down completely randomly.
Pair Corralation between Ares Acquisition and Barry Callebaut
If you would invest 1,056 in Ares Acquisition on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Ares Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Ares Acquisition vs. Barry Callebaut AG
Performance |
| Timeline |
| Ares Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barry Callebaut AG |
Ares Acquisition and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ares Acquisition and Barry Callebaut
The main advantage of trading using opposite Ares Acquisition and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ares Acquisition 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 Ares Acquisition 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.| Barry Callebaut vs. Hershey Co | Barry Callebaut vs. Mondelez International | Barry Callebaut vs. Chocoladefabriken Lindt Sprngli | Barry Callebaut vs. Bunzl plc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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