Correlation Between ATHENE HOLDING and Berkshire Hathaway
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By analyzing existing cross correlation between ATHENE HOLDING PRFSERC and Berkshire Hathaway, you can compare the effects of market volatilities on ATHENE HOLDING 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 ATHENE HOLDING with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE HOLDING and Berkshire Hathaway.
Diversification Opportunities for ATHENE HOLDING and Berkshire Hathaway
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ATHENE and Berkshire is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HOLDING PRFSERC and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and ATHENE HOLDING 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 ATHENE HOLDING PRFSERC 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 ATHENE HOLDING i.e., ATHENE HOLDING and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between ATHENE HOLDING and Berkshire Hathaway
Assuming the 90 days trading horizon ATHENE HOLDING is expected to generate 2.58 times less return on investment than Berkshire Hathaway. But when comparing it to its historical volatility, ATHENE HOLDING PRFSERC is 1.84 times less risky than Berkshire Hathaway. It trades about 0.1 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 37,540 in Berkshire Hathaway on September 3, 2024 and sell it today you would earn a total of 8,390 from holding Berkshire Hathaway or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATHENE HOLDING PRFSERC vs. Berkshire Hathaway
Performance |
| Timeline |
| ATHENE HOLDING PRFSERC |
| Berkshire Hathaway |
ATHENE HOLDING and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATHENE HOLDING and Berkshire Hathaway
The main advantage of trading using opposite ATHENE HOLDING and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATHENE HOLDING 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.| ATHENE HOLDING vs. Berkshire Hathaway | ATHENE HOLDING vs. Allianz SE VNA | ATHENE HOLDING vs. AXA SA | ATHENE HOLDING vs. AXA SA |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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