Correlation Between Bucher Industries and Barry Callebaut

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

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

Diversification Opportunities for Bucher Industries and Barry Callebaut

0.52

Correlation Coefficient

Bucher Industries  Barry Callebaut

Very weak diversification

The 3 months correlation between Bucher and Barry is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bucher Industries AG 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 Bucher Industries 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 Bucher Industries AG 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 Bucher Industries i.e., Bucher Industries and Barry Callebaut go up and down completely randomly.

Pair Corralation between Bucher Industries and Barry Callebaut

Assuming the 90 days trading horizon Bucher Industries is expected to generate 8.11 times less return on investment than Barry Callebaut. But when comparing it to its historical volatility, Bucher Industries AG is 2.47 times less risky than Barry Callebaut. It trades about 0.06 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  73,250  in Barry Callebaut AG on May 6, 2025 and sell it today you would earn a total of  26,400  from holding Barry Callebaut AG or generate 36.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bucher Industries AG  vs.  Barry Callebaut AG

Bucher Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bucher Industries AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Bucher Industries is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Barry Callebaut AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Barry Callebaut AG are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Barry Callebaut showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bucher Industries and Barry Callebaut

The main advantage of trading using opposite Bucher Industries and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucher Industries 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.

The idea behind Bucher Industries AG and Barry Callebaut AG 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.