Correlation Between T.J. Maxx and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both T.J. Maxx 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 T.J. Maxx and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The TJX Companies and Barry Callebaut AG, you can compare the effects of market volatilities on T.J. Maxx 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 T.J. Maxx with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of T.J. Maxx and Barry Callebaut.
Diversification Opportunities for T.J. Maxx and Barry Callebaut
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between T.J. and Barry is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding The TJX Companies 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 T.J. Maxx 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 The TJX Companies 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 T.J. Maxx i.e., T.J. Maxx and Barry Callebaut go up and down completely randomly.
Pair Corralation between T.J. Maxx and Barry Callebaut
Considering the 90-day investment horizon The TJX Companies is expected to generate 0.27 times more return on investment than Barry Callebaut. However, The TJX Companies is 3.72 times less risky than Barry Callebaut. It trades about 0.27 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about -0.14 per unit of risk. If you would invest 11,488 in The TJX Companies on September 13, 2024 and sell it today you would earn a total of 1,160 from holding The TJX Companies or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The TJX Companies vs. Barry Callebaut AG
Performance |
| Timeline |
| TJX Companies |
| Barry Callebaut AG |
T.J. Maxx and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T.J. Maxx and Barry Callebaut
The main advantage of trading using opposite T.J. Maxx and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T.J. Maxx 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.| T.J. Maxx vs. Capri Holdings | T.J. Maxx vs. Movado Group | T.J. Maxx vs. Tapestry | T.J. Maxx vs. Brilliant Earth Group |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |