Correlation Between Playmates Toys and Berkshire Hathaway
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By analyzing existing cross correlation between Playmates Toys Limited and Berkshire Hathaway, you can compare the effects of market volatilities on Playmates Toys 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 Playmates Toys with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playmates Toys and Berkshire Hathaway.
Diversification Opportunities for Playmates Toys and Berkshire Hathaway
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playmates and Berkshire is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Playmates Toys Limited and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Playmates Toys 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 Playmates Toys Limited 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 Playmates Toys i.e., Playmates Toys and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Playmates Toys and Berkshire Hathaway
Assuming the 90 days horizon Playmates Toys Limited is expected to generate 8.4 times more return on investment than Berkshire Hathaway. However, Playmates Toys is 8.4 times more volatile than Berkshire Hathaway. It trades about 0.08 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.09 per unit of risk. If you would invest 1.30 in Playmates Toys Limited on October 29, 2024 and sell it today you would earn a total of 5.20 from holding Playmates Toys Limited or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playmates Toys Limited vs. Berkshire Hathaway
Performance |
| Timeline |
| Playmates Toys |
| Berkshire Hathaway |
Playmates Toys and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playmates Toys and Berkshire Hathaway
The main advantage of trading using opposite Playmates Toys and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playmates Toys 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.| Playmates Toys vs. PPHE HOTEL GROUP | Playmates Toys vs. Cal Maine Foods | Playmates Toys vs. Pebblebrook Hotel Trust | Playmates Toys vs. Ebro Foods SA |
| Berkshire Hathaway vs. AECOM TECHNOLOGY | Berkshire Hathaway vs. Firan Technology Group | Berkshire Hathaway vs. Wayside Technology Group | Berkshire Hathaway vs. Nordic Semiconductor ASA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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