Correlation Between Berkshire Hathaway and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Oxford Technology 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 Oxford Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Oxford Technology 2, you can compare the effects of market volatilities on Berkshire Hathaway and Oxford Technology 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Oxford Technology.
Diversification Opportunities for Berkshire Hathaway and Oxford Technology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Berkshire and Oxford is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Oxford Technology go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Oxford Technology
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 0.52 times more return on investment than Oxford Technology. However, Berkshire Hathaway is 1.93 times less risky than Oxford Technology. It trades about 0.08 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.13 per unit of risk. If you would invest 31,055 in Berkshire Hathaway on November 5, 2024 and sell it today you would earn a total of 16,020 from holding Berkshire Hathaway or generate 51.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Berkshire Hathaway vs. Oxford Technology 2
Performance |
| Timeline |
| Berkshire Hathaway |
| Oxford Technology |
Berkshire Hathaway and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Oxford Technology
The main advantage of trading using opposite Berkshire Hathaway and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.| Berkshire Hathaway vs. DXC Technology Co | Berkshire Hathaway vs. Universal Music Group | Berkshire Hathaway vs. Allianz Technology Trust | Berkshire Hathaway vs. Software Circle plc |
| Oxford Technology vs. Ondine Biomedical | Oxford Technology vs. Costco Wholesale Corp | Oxford Technology vs. Take Two Interactive Software | Oxford Technology vs. JD Sports Fashion |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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