Correlation Between Enter Air and Berkshire Hathaway
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By analyzing existing cross correlation between Enter Air SA and Berkshire Hathaway, you can compare the effects of market volatilities on Enter Air 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 Enter Air with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and Berkshire Hathaway.
Diversification Opportunities for Enter Air and Berkshire Hathaway
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enter and Berkshire is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Enter Air 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 Enter Air SA 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 Enter Air i.e., Enter Air and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Enter Air and Berkshire Hathaway
Assuming the 90 days trading horizon Enter Air SA is expected to generate 3.79 times more return on investment than Berkshire Hathaway. However, Enter Air is 3.79 times more volatile than Berkshire Hathaway. It trades about 0.09 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.1 per unit of risk. If you would invest 303.00 in Enter Air SA on September 12, 2024 and sell it today you would earn a total of 935.00 from holding Enter Air SA or generate 308.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enter Air SA vs. Berkshire Hathaway
Performance |
| Timeline |
| Enter Air SA |
| Berkshire Hathaway |
Enter Air and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and Berkshire Hathaway
The main advantage of trading using opposite Enter Air and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air 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.The idea behind Enter Air SA and Berkshire Hathaway pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Berkshire Hathaway vs. METHODE ELECTRONICS | Berkshire Hathaway vs. Electronic Arts | Berkshire Hathaway vs. NORWEGIAN AIR SHUT | Berkshire Hathaway vs. Enter Air SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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