Correlation Between American Express and BERKSHIRE
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By analyzing existing cross correlation between American Express and BERKSHIRE HATHAWAY ENERGY, you can compare the effects of market volatilities on American Express and BERKSHIRE 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 American Express with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and BERKSHIRE.
Diversification Opportunities for American Express and BERKSHIRE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and BERKSHIRE is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BERKSHIRE HATHAWAY ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY ENERGY and American Express 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 American Express are associated (or correlated) with BERKSHIRE. 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 ENERGY has no effect on the direction of American Express i.e., American Express and BERKSHIRE go up and down completely randomly.
Pair Corralation between American Express and BERKSHIRE
Considering the 90-day investment horizon American Express is expected to generate 1.37 times more return on investment than BERKSHIRE. However, American Express is 1.37 times more volatile than BERKSHIRE HATHAWAY ENERGY. It trades about 0.13 of its potential returns per unit of risk. BERKSHIRE HATHAWAY ENERGY is currently generating about -0.04 per unit of risk. If you would invest 23,556 in American Express on September 1, 2024 and sell it today you would earn a total of 6,912 from holding American Express or generate 29.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
American Express vs. BERKSHIRE HATHAWAY ENERGY
Performance |
| Timeline |
| American Express |
| BERKSHIRE HATHAWAY ENERGY |
American Express and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and BERKSHIRE
The main advantage of trading using opposite American Express and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, BERKSHIRE 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 will offset losses from the drop in BERKSHIRE's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| BERKSHIRE vs. MGIC Investment Corp | BERKSHIRE vs. Nexstar Broadcasting Group | BERKSHIRE vs. Black Hills | BERKSHIRE vs. Western Asset Investment |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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