Correlation Between Barry Callebaut and Galenica Sante
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Galenica Sante 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 Galenica Sante 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 Galenica Sante AG, you can compare the effects of market volatilities on Barry Callebaut and Galenica Sante 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 Galenica Sante. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Galenica Sante.
Diversification Opportunities for Barry Callebaut and Galenica Sante
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barry and Galenica is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Galenica Sante AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galenica Sante AG 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 Galenica Sante. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galenica Sante AG has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Galenica Sante go up and down completely randomly.
Pair Corralation between Barry Callebaut and Galenica Sante
Assuming the 90 days trading horizon Barry Callebaut AG is expected to generate 4.12 times more return on investment than Galenica Sante. However, Barry Callebaut is 4.12 times more volatile than Galenica Sante AG. It trades about 0.18 of its potential returns per unit of risk. Galenica Sante AG is currently generating about 0.09 per unit of risk. If you would invest 101,600 in Barry Callebaut AG on November 28, 2024 and sell it today you would earn a total of 8,200 from holding Barry Callebaut AG or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barry Callebaut AG vs. Galenica Sante AG
Performance |
| Timeline |
| Barry Callebaut AG |
| Galenica Sante AG |
Barry Callebaut and Galenica Sante Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Galenica Sante
The main advantage of trading using opposite Barry Callebaut and Galenica Sante positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Galenica Sante 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 Galenica Sante will offset losses from the drop in Galenica Sante'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 |
| Galenica Sante vs. VAT Group AG | Galenica Sante vs. Baloise Holding AG | Galenica Sante vs. Swiss Life Holding | Galenica Sante vs. Helvetia Holding AG |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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