Correlation Between Berkshire Hathaway and Berner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Berner Kantonalbank 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 Berkshire Hathaway and Berner Kantonalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Berner Kantonalbank AG, you can compare the effects of market volatilities on Berkshire Hathaway and Berner Kantonalbank 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 Berkshire Hathaway with a short position of Berner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Berner Kantonalbank.
Diversification Opportunities for Berkshire Hathaway and Berner Kantonalbank
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and Berner is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Berner Kantonalbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berner Kantonalbank and Berkshire Hathaway 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 Berkshire Hathaway are associated (or correlated) with Berner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berner Kantonalbank has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Berner Kantonalbank go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Berner Kantonalbank
Assuming the 90 days trading horizon Berkshire Hathaway is expected to under-perform the Berner Kantonalbank. In addition to that, Berkshire Hathaway is 1.92 times more volatile than Berner Kantonalbank AG. It trades about -0.12 of its total potential returns per unit of risk. Berner Kantonalbank AG is currently generating about 0.17 per unit of volatility. If you would invest 23,400 in Berner Kantonalbank AG on October 29, 2024 and sell it today you would earn a total of 900.00 from holding Berner Kantonalbank AG or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Berner Kantonalbank AG
Performance |
| Timeline |
| Berkshire Hathaway |
| Berner Kantonalbank |
Berkshire Hathaway and Berner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Berner Kantonalbank
The main advantage of trading using opposite Berkshire Hathaway and Berner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Berner Kantonalbank 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 Berner Kantonalbank will offset losses from the drop in Berner Kantonalbank's long position.| Berkshire Hathaway vs. Westlake Chemical Corp | Berkshire Hathaway vs. Melia Hotels | Berkshire Hathaway vs. Gruppo MutuiOnline SpA | Berkshire Hathaway vs. Vitec Software Group |
| Berner Kantonalbank vs. Worldwide Healthcare Trust | Berner Kantonalbank vs. Induction Healthcare Group | Berner Kantonalbank vs. Finnair Oyj | Berner Kantonalbank vs. Systemair AB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |