Correlation Between Grieg Seafood and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Berkshire Hathaway 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 Grieg Seafood and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Berkshire Hathaway, you can compare the effects of market volatilities on Grieg Seafood and Berkshire Hathaway 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 Grieg Seafood with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Berkshire Hathaway.
Diversification Opportunities for Grieg Seafood and Berkshire Hathaway
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grieg and Berkshire is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Grieg Seafood 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 Grieg Seafood are associated (or correlated) with Berkshire Hathaway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Hathaway has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Grieg Seafood and Berkshire Hathaway
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 2.1 times more return on investment than Berkshire Hathaway. However, Grieg Seafood is 2.1 times more volatile than Berkshire Hathaway. It trades about 0.07 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.0 per unit of risk. If you would invest 6,320 in Grieg Seafood on September 13, 2024 and sell it today you would earn a total of 375.00 from holding Grieg Seafood or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Berkshire Hathaway
Performance |
| Timeline |
| Grieg Seafood |
| Berkshire Hathaway |
Grieg Seafood and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Berkshire Hathaway
The main advantage of trading using opposite Grieg Seafood and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Berkshire Hathaway 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 Berkshire Hathaway will offset losses from the drop in Berkshire Hathaway's long position.| Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Hyundai Motor | Grieg Seafood vs. Reliance Industries Ltd |
| Berkshire Hathaway vs. Grieg Seafood | Berkshire Hathaway vs. Sligro Food Group | Berkshire Hathaway vs. Axfood AB | Berkshire Hathaway vs. GoldMining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |