Correlation Between Evolva Holding and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both Evolva Holding 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 Evolva Holding and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolva Holding SA and Barry Callebaut AG, you can compare the effects of market volatilities on Evolva Holding 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 Evolva Holding with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolva Holding and Barry Callebaut.
Diversification Opportunities for Evolva Holding and Barry Callebaut
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Evolva and Barry is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Evolva Holding SA 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 Evolva Holding 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 Evolva Holding SA 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 Evolva Holding i.e., Evolva Holding and Barry Callebaut go up and down completely randomly.
Pair Corralation between Evolva Holding and Barry Callebaut
Assuming the 90 days trading horizon Evolva Holding SA is expected to generate 2.83 times more return on investment than Barry Callebaut. However, Evolva Holding is 2.83 times more volatile than Barry Callebaut AG. It trades about -0.05 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about -0.36 per unit of risk. If you would invest 93.00 in Evolva Holding SA on August 30, 2024 and sell it today you would lose (8.00) from holding Evolva Holding SA or give up 8.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolva Holding SA vs. Barry Callebaut AG
Performance |
| Timeline |
| Evolva Holding SA |
| Barry Callebaut AG |
Evolva Holding and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolva Holding and Barry Callebaut
The main advantage of trading using opposite Evolva Holding and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolva Holding 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.| Evolva Holding vs. Basilea Pharmaceutica AG | Evolva Holding vs. Idorsia | Evolva Holding vs. Newron Pharmaceuticals SpA | Evolva Holding vs. Molecular Partners 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |