Correlation Between ESSA Bancorp and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both ESSA Bancorp 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 ESSA Bancorp and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESSA Bancorp and Barry Callebaut AG, you can compare the effects of market volatilities on ESSA Bancorp 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 ESSA Bancorp with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESSA Bancorp and Barry Callebaut.
Diversification Opportunities for ESSA Bancorp and Barry Callebaut
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ESSA and Barry is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ESSA Bancorp 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 ESSA Bancorp 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 ESSA Bancorp 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 ESSA Bancorp i.e., ESSA Bancorp and Barry Callebaut go up and down completely randomly.
Pair Corralation between ESSA Bancorp and Barry Callebaut
Given the investment horizon of 90 days ESSA Bancorp is expected to generate 0.89 times more return on investment than Barry Callebaut. However, ESSA Bancorp is 1.12 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 -0.01 per unit of risk. If you would invest 1,959 in ESSA Bancorp on September 14, 2024 and sell it today you would earn a total of 64.00 from holding ESSA Bancorp or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.02% |
| Values | Daily Returns |
ESSA Bancorp vs. Barry Callebaut AG
Performance |
| Timeline |
| ESSA Bancorp |
| Barry Callebaut AG |
ESSA Bancorp and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESSA Bancorp and Barry Callebaut
The main advantage of trading using opposite ESSA Bancorp and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESSA Bancorp 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.| ESSA Bancorp vs. Community West Bancshares | ESSA Bancorp vs. First Northwest Bancorp | ESSA Bancorp vs. First Community | ESSA Bancorp vs. Oak Valley Bancorp |
| Barry Callebaut vs. Hershey Co | Barry Callebaut vs. Mondelez International | Barry Callebaut vs. Chocoladefabriken Lindt Sprngli | Barry Callebaut vs. Bunzl plc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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