Correlation Between Barry Callebaut and Komax Holding
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Komax Holding 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 Komax Holding 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 Komax Holding AG, you can compare the effects of market volatilities on Barry Callebaut and Komax Holding 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 Komax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Komax Holding.
Diversification Opportunities for Barry Callebaut and Komax Holding
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barry and Komax is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding 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 Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Komax Holding go up and down completely randomly.
Pair Corralation between Barry Callebaut and Komax Holding
Assuming the 90 days trading horizon Barry Callebaut AG is expected to generate 1.11 times more return on investment than Komax Holding. However, Barry Callebaut is 1.11 times more volatile than Komax Holding AG. It trades about 0.0 of its potential returns per unit of risk. Komax Holding AG is currently generating about -0.11 per unit of risk. If you would invest 139,842 in Barry Callebaut AG on September 3, 2024 and sell it today you would lose (5,442) from holding Barry Callebaut AG or give up 3.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barry Callebaut AG vs. Komax Holding AG
Performance |
| Timeline |
| Barry Callebaut AG |
| Komax Holding AG |
Barry Callebaut and Komax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Komax Holding
The main advantage of trading using opposite Barry Callebaut and Komax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Komax Holding 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 Komax Holding will offset losses from the drop in Komax Holding's long position.| Barry Callebaut vs. Implenia AG | Barry Callebaut vs. OC Oerlikon Corp | Barry Callebaut vs. U Blox Holding | Barry Callebaut vs. Sulzer AG |
| Komax Holding vs. Emmi AG | Komax Holding vs. EMS CHEMIE HOLDING AG | Komax Holding vs. Barry Callebaut AG | Komax Holding vs. VAT Group 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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