Correlation Between Barry Callebaut and Glarner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Glarner Kantonalbank 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 Glarner Kantonalbank 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 Glarner Kantonalbank, you can compare the effects of market volatilities on Barry Callebaut and Glarner Kantonalbank 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 Glarner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Glarner Kantonalbank.
Diversification Opportunities for Barry Callebaut and Glarner Kantonalbank
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barry and Glarner is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Glarner Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glarner Kantonalbank 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 Glarner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glarner Kantonalbank has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Glarner Kantonalbank go up and down completely randomly.
Pair Corralation between Barry Callebaut and Glarner Kantonalbank
Assuming the 90 days trading horizon Barry Callebaut AG is expected to generate 2.94 times more return on investment than Glarner Kantonalbank. However, Barry Callebaut is 2.94 times more volatile than Glarner Kantonalbank. It trades about 0.02 of its potential returns per unit of risk. Glarner Kantonalbank is currently generating about -0.02 per unit of risk. If you would invest 126,600 in Barry Callebaut AG on August 28, 2024 and sell it today you would earn a total of 6,800 from holding Barry Callebaut AG or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Barry Callebaut AG vs. Glarner Kantonalbank
Performance |
| Timeline |
| Barry Callebaut AG |
| Glarner Kantonalbank |
Barry Callebaut and Glarner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Glarner Kantonalbank
The main advantage of trading using opposite Barry Callebaut and Glarner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Glarner Kantonalbank 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 Glarner Kantonalbank will offset losses from the drop in Glarner Kantonalbank'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 |
| Glarner Kantonalbank vs. Berner Kantonalbank AG | Glarner Kantonalbank vs. Luzerner Kantonalbank AG | Glarner Kantonalbank vs. Banque Cantonale | Glarner Kantonalbank vs. Liechtensteinische Landesbank 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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