Correlation Between Barry Callebaut and Schweizerische Nationalbank
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Schweizerische Nationalbank 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 Schweizerische Nationalbank 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 Schweizerische Nationalbank, you can compare the effects of market volatilities on Barry Callebaut and Schweizerische Nationalbank 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 Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Schweizerische Nationalbank.
Diversification Opportunities for Barry Callebaut and Schweizerische Nationalbank
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barry and Schweizerische is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Schweizerische Nationalbank go up and down completely randomly.
Pair Corralation between Barry Callebaut and Schweizerische Nationalbank
Assuming the 90 days trading horizon Barry Callebaut AG is expected to under-perform the Schweizerische Nationalbank. In addition to that, Barry Callebaut is 1.23 times more volatile than Schweizerische Nationalbank. It trades about -0.35 of its total potential returns per unit of risk. Schweizerische Nationalbank is currently generating about 0.25 per unit of volatility. If you would invest 330,000 in Schweizerische Nationalbank on November 4, 2024 and sell it today you would earn a total of 30,000 from holding Schweizerische Nationalbank or generate 9.09% 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. Schweizerische Nationalbank
Performance |
| Timeline |
| Barry Callebaut AG |
| Schweizerische Nationalbank |
Barry Callebaut and Schweizerische Nationalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Schweizerische Nationalbank
The main advantage of trading using opposite Barry Callebaut and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank'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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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