Correlation Between Eastinco Mining and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Berkshire Hathaway 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 Eastinco Mining and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastinco Mining Exploration and Berkshire Hathaway, you can compare the effects of market volatilities on Eastinco Mining 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 Eastinco Mining with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Berkshire Hathaway.
Diversification Opportunities for Eastinco Mining and Berkshire Hathaway
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastinco and Berkshire is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Eastinco Mining 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 Eastinco Mining Exploration 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 Eastinco Mining i.e., Eastinco Mining and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Eastinco Mining and Berkshire Hathaway
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 1.85 times more return on investment than Berkshire Hathaway. However, Eastinco Mining is 1.85 times more volatile than Berkshire Hathaway. It trades about 0.21 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.12 per unit of risk. If you would invest 4,700 in Eastinco Mining Exploration on November 8, 2024 and sell it today you would earn a total of 700.00 from holding Eastinco Mining Exploration or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Berkshire Hathaway
Performance |
| Timeline |
| Eastinco Mining Expl |
| Berkshire Hathaway |
Eastinco Mining and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Berkshire Hathaway
The main advantage of trading using opposite Eastinco Mining and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining 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.| Eastinco Mining vs. Learning Technologies Group | Eastinco Mining vs. Check Point Software | Eastinco Mining vs. Spotify Technology SA | Eastinco Mining vs. Bytes Technology |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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