Correlation Between Barry Callebaut and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Banque Cantonale 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 Barry Callebaut and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barry Callebaut AG and Banque Cantonale, you can compare the effects of market volatilities on Barry Callebaut and Banque Cantonale 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 Barry Callebaut with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Banque Cantonale.
Diversification Opportunities for Barry Callebaut and Banque Cantonale
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barry and Banque is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Barry Callebaut 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 Barry Callebaut AG are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Banque Cantonale go up and down completely randomly.
Pair Corralation between Barry Callebaut and Banque Cantonale
Assuming the 90 days trading horizon Barry Callebaut AG is expected to under-perform the Banque Cantonale. In addition to that, Barry Callebaut is 2.79 times more volatile than Banque Cantonale. It trades about -0.34 of its total potential returns per unit of risk. Banque Cantonale is currently generating about -0.17 per unit of volatility. If you would invest 8,920 in Banque Cantonale on August 24, 2024 and sell it today you would lose (225.00) from holding Banque Cantonale or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barry Callebaut AG vs. Banque Cantonale
Performance |
| Timeline |
| Barry Callebaut AG |
| Banque Cantonale |
Barry Callebaut and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Banque Cantonale
The main advantage of trading using opposite Barry Callebaut and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Barry Callebaut vs. Givaudan SA | Barry Callebaut vs. Chocoladefabriken Lindt Spruengli | Barry Callebaut vs. Chocoladefabriken Lindt Spruengli | Barry Callebaut vs. EMS CHEMIE HOLDING AG |
| Banque Cantonale vs. Santhera Pharmaceuticals Holding | Banque Cantonale vs. Newron Pharmaceuticals SpA | Banque Cantonale vs. Basilea Pharmaceutica AG | Banque Cantonale vs. Evolva Holding SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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