Correlation Between Barry Callebaut and Swissquote Group
Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Swissquote Group 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 Swissquote Group 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 Swissquote Group Holding, you can compare the effects of market volatilities on Barry Callebaut and Swissquote Group 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 Swissquote Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Swissquote Group.
Diversification Opportunities for Barry Callebaut and Swissquote Group
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barry and Swissquote is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Swissquote Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissquote Group Holding 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 Swissquote Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissquote Group Holding has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Swissquote Group go up and down completely randomly.
Pair Corralation between Barry Callebaut and Swissquote Group
Assuming the 90 days trading horizon Barry Callebaut AG is expected to under-perform the Swissquote Group. In addition to that, Barry Callebaut is 1.48 times more volatile than Swissquote Group Holding. It trades about -0.35 of its total potential returns per unit of risk. Swissquote Group Holding is currently generating about 0.4 per unit of volatility. If you would invest 35,420 in Swissquote Group Holding on November 4, 2024 and sell it today you would earn a total of 4,420 from holding Swissquote Group Holding or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barry Callebaut AG vs. Swissquote Group Holding
Performance |
| Timeline |
| Barry Callebaut AG |
| Swissquote Group Holding |
Barry Callebaut and Swissquote Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barry Callebaut and Swissquote Group
The main advantage of trading using opposite Barry Callebaut and Swissquote Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Swissquote Group 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 Swissquote Group will offset losses from the drop in Swissquote Group'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 |
| Swissquote Group vs. Logitech International SA | Swissquote Group vs. Swiss Life Holding | Swissquote Group vs. VAT Group AG | Swissquote Group vs. Partners Group Holding |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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