Correlation Between Barry Callebaut and Schindler
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Schindler 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 Schindler 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 Schindler Ps, you can compare the effects of market volatilities on Barry Callebaut and Schindler 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 Schindler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Schindler.
Diversification Opportunities for Barry Callebaut and Schindler
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barry and Schindler is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Schindler Ps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schindler Ps 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 Schindler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schindler Ps has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Schindler go up and down completely randomly.
Pair Corralation between Barry Callebaut and Schindler
Assuming the 90 days trading horizon Barry Callebaut AG is expected to under-perform the Schindler. In addition to that, Barry Callebaut is 1.87 times more volatile than Schindler Ps. It trades about -0.27 of its total potential returns per unit of risk. Schindler Ps is currently generating about 0.07 per unit of volatility. If you would invest 25,540 in Schindler Ps on September 5, 2024 and sell it today you would earn a total of 380.00 from holding Schindler Ps or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barry Callebaut AG vs. Schindler Ps
Performance |
| Timeline |
| Barry Callebaut AG |
| Schindler Ps |
Barry Callebaut and Schindler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Schindler
The main advantage of trading using opposite Barry Callebaut and Schindler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Schindler 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 Schindler will offset losses from the drop in Schindler'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 |
| Schindler vs. Emmi AG | Schindler vs. EMS CHEMIE HOLDING AG | Schindler vs. Barry Callebaut AG | Schindler 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 Stocks Directory module to find actively traded stocks across global markets.
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