Correlation Between Vontobel Holding and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both Vontobel 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 Vontobel 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 Vontobel Holding and Barry Callebaut AG, you can compare the effects of market volatilities on Vontobel 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 Vontobel Holding with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontobel Holding and Barry Callebaut.
Diversification Opportunities for Vontobel Holding and Barry Callebaut
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vontobel and Barry is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Vontobel 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 Vontobel 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 Vontobel 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 Vontobel Holding i.e., Vontobel Holding and Barry Callebaut go up and down completely randomly.
Pair Corralation between Vontobel Holding and Barry Callebaut
Assuming the 90 days trading horizon Vontobel Holding is expected to generate 0.74 times more return on investment than Barry Callebaut. However, Vontobel Holding is 1.35 times less risky than Barry Callebaut. It trades about 0.05 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 5,239 in Vontobel Holding on November 4, 2024 and sell it today you would earn a total of 1,501 from holding Vontobel Holding or generate 28.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vontobel Holding vs. Barry Callebaut AG
Performance |
| Timeline |
| Vontobel Holding |
| Barry Callebaut AG |
Vontobel Holding and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vontobel Holding and Barry Callebaut
The main advantage of trading using opposite Vontobel Holding and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontobel 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.| Vontobel Holding vs. Julius Baer Gruppe | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding vs. Sulzer AG | Vontobel Holding vs. Swiss Life 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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