Correlation Between OC Oerlikon and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon 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 OC Oerlikon and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OC Oerlikon Corp and Barry Callebaut AG, you can compare the effects of market volatilities on OC Oerlikon 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 OC Oerlikon with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Barry Callebaut.
Diversification Opportunities for OC Oerlikon and Barry Callebaut
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OERL and Barry is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp 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 OC Oerlikon 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 OC Oerlikon Corp 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 OC Oerlikon i.e., OC Oerlikon and Barry Callebaut go up and down completely randomly.
Pair Corralation between OC Oerlikon and Barry Callebaut
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to generate 1.14 times more return on investment than Barry Callebaut. However, OC Oerlikon is 1.14 times more volatile than Barry Callebaut AG. It trades about -0.03 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 421.00 in OC Oerlikon Corp on September 3, 2024 and sell it today you would lose (47.00) from holding OC Oerlikon Corp or give up 11.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Barry Callebaut AG
Performance |
| Timeline |
| OC Oerlikon Corp |
| Barry Callebaut AG |
OC Oerlikon and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Barry Callebaut
The main advantage of trading using opposite OC Oerlikon and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon 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.| OC Oerlikon vs. Emmi AG | OC Oerlikon vs. EMS CHEMIE HOLDING AG | OC Oerlikon vs. Barry Callebaut AG | OC Oerlikon vs. Sulzer AG |
| Barry Callebaut vs. Implenia AG | Barry Callebaut vs. OC Oerlikon Corp | Barry Callebaut vs. U Blox Holding | Barry Callebaut vs. Sulzer 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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