Correlation Between Barry Callebaut and Implenia
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Implenia 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 Implenia 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 Implenia AG, you can compare the effects of market volatilities on Barry Callebaut and Implenia 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 Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Implenia.
Diversification Opportunities for Barry Callebaut and Implenia
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barry and Implenia is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia 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 Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Implenia go up and down completely randomly.
Pair Corralation between Barry Callebaut and Implenia
Assuming the 90 days trading horizon Barry Callebaut AG is expected to under-perform the Implenia. In addition to that, Barry Callebaut is 1.16 times more volatile than Implenia AG. It trades about -0.27 of its total potential returns per unit of risk. Implenia AG is currently generating about -0.02 per unit of volatility. If you would invest 3,040 in Implenia AG on September 4, 2024 and sell it today you would lose (25.00) from holding Implenia AG or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barry Callebaut AG vs. Implenia AG
Performance |
| Timeline |
| Barry Callebaut AG |
| Implenia AG |
Barry Callebaut and Implenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Implenia
The main advantage of trading using opposite Barry Callebaut and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.| Barry Callebaut vs. Implenia AG | Barry Callebaut vs. OC Oerlikon Corp | Barry Callebaut vs. Sulzer AG | Barry Callebaut vs. Swissquote Group Holding |
| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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