Correlation Between Emmi AG and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both Emmi AG and Barry Callebaut 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 Emmi AG and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emmi AG and Barry Callebaut AG, you can compare the effects of market volatilities on Emmi AG and Barry Callebaut 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 Emmi AG with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmi AG and Barry Callebaut.
Diversification Opportunities for Emmi AG and Barry Callebaut
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emmi and Barry is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Emmi AG and Barry Callebaut AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barry Callebaut AG and Emmi AG 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 Emmi AG are associated (or correlated) with Barry Callebaut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barry Callebaut AG has no effect on the direction of Emmi AG i.e., Emmi AG and Barry Callebaut go up and down completely randomly.
Pair Corralation between Emmi AG and Barry Callebaut
Assuming the 90 days trading horizon Emmi AG is expected to generate 0.62 times more return on investment than Barry Callebaut. However, Emmi AG is 1.61 times less risky than Barry Callebaut. It trades about -0.33 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about -0.43 per unit of risk. If you would invest 85,000 in Emmi AG on August 29, 2024 and sell it today you would lose (6,800) from holding Emmi AG or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emmi AG vs. Barry Callebaut AG
Performance |
| Timeline |
| Emmi AG |
| Barry Callebaut AG |
Emmi AG and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmi AG and Barry Callebaut
The main advantage of trading using opposite Emmi AG and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmi AG position performs unexpectedly, Barry Callebaut 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 Barry Callebaut will offset losses from the drop in Barry Callebaut's long position.| Emmi AG vs. Santhera Pharmaceuticals Holding | Emmi AG vs. Newron Pharmaceuticals SpA | Emmi AG vs. Basilea Pharmaceutica AG | Emmi AG vs. Evolva Holding SA |
| Barry Callebaut vs. Santhera Pharmaceuticals Holding | Barry Callebaut vs. Newron Pharmaceuticals SpA | Barry Callebaut vs. Basilea Pharmaceutica AG | Barry Callebaut vs. Evolva Holding SA |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |