Correlation Between Barry Callebaut and Vaudoise Assurances

Can any of the company-specific risk be diversified away by investing in both Barry Callebaut and Vaudoise Assurances 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 Barry Callebaut and Vaudoise Assurances into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Barry Callebaut AG and Vaudoise Assurances Holding, you can compare the effects of market volatilities on Barry Callebaut and Vaudoise Assurances 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 Barry Callebaut with a short position of Vaudoise Assurances. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barry Callebaut and Vaudoise Assurances.

Diversification Opportunities for Barry Callebaut and Vaudoise Assurances

0.61

Correlation Coefficient

Barry Callebaut  Vaudoise Assurances

Poor diversification

The 3 months correlation between Barry and Vaudoise is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Barry Callebaut AG and Vaudoise Assurances Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaudoise Assurances and Barry Callebaut 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 Barry Callebaut AG are associated (or correlated) with Vaudoise Assurances. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaudoise Assurances has no effect on the direction of Barry Callebaut i.e., Barry Callebaut and Vaudoise Assurances go up and down completely randomly.

Pair Corralation between Barry Callebaut and Vaudoise Assurances

Assuming the 90 days trading horizon Barry Callebaut is expected to generate 1.2 times less return on investment than Vaudoise Assurances. In addition to that, Barry Callebaut is 2.34 times more volatile than Vaudoise Assurances Holding. It trades about 0.03 of its total potential returns per unit of risk. Vaudoise Assurances Holding is currently generating about 0.08 per unit of volatility. If you would invest  63,000  in Vaudoise Assurances Holding on September 12, 2025 and sell it today you would earn a total of  3,000  from holding Vaudoise Assurances Holding or generate 4.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Barry Callebaut AG  vs.  Vaudoise Assurances Holding

Barry Callebaut AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Barry Callebaut AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Barry Callebaut is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Vaudoise Assurances

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vaudoise Assurances Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Vaudoise Assurances is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Barry Callebaut and Vaudoise Assurances

The main advantage of trading using opposite Barry Callebaut and Vaudoise Assurances positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barry Callebaut position performs unexpectedly, Vaudoise Assurances 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 Vaudoise Assurances will offset losses from the drop in Vaudoise Assurances' long position.

The idea behind Barry Callebaut AG and Vaudoise Assurances Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.