Correlation Between EMS CHEMIE and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both EMS CHEMIE 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 EMS CHEMIE and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMS CHEMIE HOLDING AG and Barry Callebaut AG, you can compare the effects of market volatilities on EMS CHEMIE 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 EMS CHEMIE with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMS CHEMIE and Barry Callebaut.
Diversification Opportunities for EMS CHEMIE and Barry Callebaut
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between EMS and Barry is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding EMS CHEMIE HOLDING 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 EMS CHEMIE 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 EMS CHEMIE HOLDING 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 EMS CHEMIE i.e., EMS CHEMIE and Barry Callebaut go up and down completely randomly.
Pair Corralation between EMS CHEMIE and Barry Callebaut
Assuming the 90 days trading horizon EMS CHEMIE HOLDING AG is expected to generate 0.57 times more return on investment than Barry Callebaut. However, EMS CHEMIE HOLDING AG is 1.76 times less risky than Barry Callebaut. It trades about 0.01 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about -0.04 per unit of risk. If you would invest 64,104 in EMS CHEMIE HOLDING AG on November 3, 2024 and sell it today you would earn a total of 546.00 from holding EMS CHEMIE HOLDING AG or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMS CHEMIE HOLDING AG vs. Barry Callebaut AG
Performance |
| Timeline |
| EMS CHEMIE HOLDING |
| Barry Callebaut AG |
EMS CHEMIE and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMS CHEMIE and Barry Callebaut
The main advantage of trading using opposite EMS CHEMIE and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMS CHEMIE 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.| EMS CHEMIE vs. Luzerner Kantonalbank AG | EMS CHEMIE vs. Hypothekarbank Lenzburg AG | EMS CHEMIE vs. Glarner Kantonalbank | EMS CHEMIE vs. BB Biotech AG |
| 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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