Berkshire Hathaway Correlations

BRK-B Stock

USD 467.95 5.14 1.11%

The current 90-days correlation between Berkshire Hathaway and American International Group is 0.55 (i.e., Very weak diversification). The correlation of Berkshire Hathaway is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Berkshire Hathaway Correlation With Market

Average diversification

The correlation between Berkshire Hathaway and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Berkshire Hathaway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Berkshire Stock

0.84	FIHL	Fidelis Insurance	Pair Corr
0.68	FGF	Fundamental Global Upward Rally	Pair Corr
0.63	GSHD	Goosehead Insurance	Pair Corr
0.85	DHIL	Diamond Hill Investment	Pair Corr
0.71	AX	Axos Financial	Pair Corr
0.65	BK	Bank of New York	Pair Corr
0.61	BX	Blackstone Group Earnings Call This Week	Pair Corr
0.61	BY	Byline Bancorp Earnings Call This Week	Pair Corr
0.61	CB	Chubb	Pair Corr

Moving against Berkshire Stock

0.31	WDH	Waterdrop ADR	Pair Corr
0.35	DB	Deutsche Bank AG Normal Trading	Pair Corr

Related Correlations Analysis

	AIG	SLF	ACGL	HIG	AEG	EQH	GSHD	ORI
AIG		-0.27	0.85	0.77	0.73	-0.34	0.0	0.0	AIG
SLF	-0.27		-0.14	0.27	0.01	0.49	0.77	0.86	SLF
ACGL	0.85	-0.14		0.81	0.58	-0.33	-0.05	0.11	ACGL
HIG	0.77	0.27	0.81		0.68	-0.09	0.37	0.52	HIG
AEG	0.73	0.01	0.58	0.68		-0.03	0.31	0.14	AEG
EQH	-0.34	0.49	-0.33	-0.09	-0.03		0.39	0.57	EQH
GSHD	0.0	0.77	-0.05	0.37	0.31	0.39		0.75	GSHD
ORI	0.0	0.86	0.11	0.52	0.14	0.57	0.75		ORI
	AIG	SLF	ACGL	HIG	AEG	EQH	GSHD	ORI

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ORI	+ 0.86	SLF
ACGL	+ 0.85	AIG
HIG	+ 0.81	ACGL
HIG	+ 0.77	AIG
GSHD	+ 0.77	SLF
ORI	+ 0.75	GSHD

High negative correlations

EQH	- 0.34	AIG
EQH	- 0.33	ACGL
SLF	- 0.27	AIG
ACGL	- 0.14	SLF
EQH	- 0.09	HIG
GSHD	- 0.05	ACGL

Risk-Adjusted Indicators

There is a big difference between Berkshire Stock performing well and Berkshire Hathaway Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Berkshire Hathaway's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AIG	0.90	(0.05)	0.00	(0.55)	0.00	0.00	2.16	(1.60)	4.63
SLF	0.69	0.06	0.07	0.11	0.78	(0.78)	1.41	(1.36)	6.02
ACGL	1.20	(0.18)	0.00	(0.35)	0.00	0.00	2.25	(2.69)	8.08
HIG	1.08	(0.05)	0.00	(0.13)	0.00	0.00	1.94	(2.78)	9.06
AEG	1.13	0.01	0.01	0.04	1.68	(1.05)	1.89	(2.31)	9.44
EQH	1.40	0.27	0.17	1.19	1.34	(1.66)	3.33	(1.90)	18.03
GSHD	1.87	0.38	0.21	0.68	1.67	(2.59)	4.29	(3.16)	18.31
ORI	0.99	0.12	0.09	0.20	1.23	(0.99)	2.40	(2.41)	7.51

Berkshire Hathaway Corporate Management

Daniel Jaksich	Controller VP	Profile
Michael Pille	Head Casualty	Profile
Warren Buffett	CEO Chairman	Profile
Charles Munger	Ex Chairman	Profile
Ajit Jain	Vice Director	Profile
Gregory Abel	Vice Director	Profile
Kara Raiguel	CEO Unit	Profile

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