Correlation Between Barry Callebaut and OC Oerlikon
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and OC Oerlikon 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 OC Oerlikon 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 OC Oerlikon Corp, you can compare the effects of market volatilities on Barry Callebaut and OC Oerlikon 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 OC Oerlikon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and OC Oerlikon.
Diversification Opportunities for Barry Callebaut and OC Oerlikon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barry and OERL is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and OC Oerlikon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OC Oerlikon Corp 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 OC Oerlikon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OC Oerlikon Corp has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and OC Oerlikon go up and down completely randomly.
Pair Corralation between Barry Callebaut and OC Oerlikon
Assuming the 90 days trading horizon Barry Callebaut AG is expected to under-perform the OC Oerlikon. But the stock apears to be less risky and, when comparing its historical volatility, Barry Callebaut AG is 1.14 times less risky than OC Oerlikon. The stock trades about -0.04 of its potential returns per unit of risk. The OC Oerlikon Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 421.00 in OC Oerlikon Corp on September 3, 2024 and sell it today you would lose (47.00) from holding OC Oerlikon Corp or give up 11.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barry Callebaut AG vs. OC Oerlikon Corp
Performance |
| Timeline |
| Barry Callebaut AG |
| OC Oerlikon Corp |
Barry Callebaut and OC Oerlikon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and OC Oerlikon
The main advantage of trading using opposite Barry Callebaut and OC Oerlikon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, OC Oerlikon 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 OC Oerlikon will offset losses from the drop in OC Oerlikon'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 |
| OC Oerlikon vs. Emmi AG | OC Oerlikon vs. EMS CHEMIE HOLDING AG | OC Oerlikon vs. Barry Callebaut AG | OC Oerlikon vs. Sulzer 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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