Correlation Between Swissquote Group and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both Swissquote Group 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 Swissquote Group and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swissquote Group Holding and Barry Callebaut AG, you can compare the effects of market volatilities on Swissquote Group 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 Swissquote Group with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swissquote Group and Barry Callebaut.
Diversification Opportunities for Swissquote Group and Barry Callebaut
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Swissquote and Barry is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Swissquote Group Holding 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 Swissquote Group 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 Swissquote Group Holding 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 Swissquote Group i.e., Swissquote Group and Barry Callebaut go up and down completely randomly.
Pair Corralation between Swissquote Group and Barry Callebaut
Assuming the 90 days trading horizon Swissquote Group Holding is expected to generate 1.13 times more return on investment than Barry Callebaut. However, Swissquote Group is 1.13 times more volatile than Barry Callebaut AG. It trades about 0.11 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about -0.07 per unit of risk. If you would invest 16,774 in Swissquote Group Holding on November 4, 2024 and sell it today you would earn a total of 23,066 from holding Swissquote Group Holding or generate 137.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swissquote Group Holding vs. Barry Callebaut AG
Performance |
| Timeline |
| Swissquote Group Holding |
| Barry Callebaut AG |
Swissquote Group and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swissquote Group and Barry Callebaut
The main advantage of trading using opposite Swissquote Group and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swissquote Group 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.| Swissquote Group vs. Logitech International SA | Swissquote Group vs. Swiss Life Holding | Swissquote Group vs. VAT Group AG | Swissquote Group vs. Partners Group Holding |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |