Correlation Between Berkshire Hathaway and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Halyk Bank 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 Halyk Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Halyk Bank of, you can compare the effects of market volatilities on Berkshire Hathaway and Halyk Bank 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 Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Halyk Bank.
Diversification Opportunities for Berkshire Hathaway and Halyk Bank
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berkshire and Halyk is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank 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 Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Halyk Bank go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Halyk Bank
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 0.62 times more return on investment than Halyk Bank. However, Berkshire Hathaway is 1.62 times less risky than Halyk Bank. It trades about 0.23 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.09 per unit of risk. If you would invest 45,500 in Berkshire Hathaway on September 1, 2024 and sell it today you would earn a total of 2,950 from holding Berkshire Hathaway or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Berkshire Hathaway vs. Halyk Bank of
Performance |
| Timeline |
| Berkshire Hathaway |
| Halyk Bank |
Berkshire Hathaway and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Halyk Bank
The main advantage of trading using opposite Berkshire Hathaway and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Halyk Bank 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 Halyk Bank will offset losses from the drop in Halyk Bank's long position.| Berkshire Hathaway vs. McEwen Mining | Berkshire Hathaway vs. Allianz Technology Trust | Berkshire Hathaway vs. Cornish Metals | Berkshire Hathaway vs. Sunny Optical Technology |
| Halyk Bank vs. Associated British Foods | Halyk Bank vs. Molson Coors Beverage | Halyk Bank vs. Fevertree Drinks Plc | Halyk Bank vs. Monster Beverage Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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