Correlation Between Berkshire Hathaway and Odontoprev
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Odontoprev 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 Berkshire Hathaway and Odontoprev into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Odontoprev SA, you can compare the effects of market volatilities on Berkshire Hathaway and Odontoprev 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 Berkshire Hathaway with a short position of Odontoprev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Odontoprev.
Diversification Opportunities for Berkshire Hathaway and Odontoprev
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and Odontoprev is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Odontoprev SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odontoprev SA and Berkshire Hathaway 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 Berkshire Hathaway are associated (or correlated) with Odontoprev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odontoprev SA has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Odontoprev go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Odontoprev
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 0.49 times more return on investment than Odontoprev. However, Berkshire Hathaway is 2.05 times less risky than Odontoprev. It trades about 0.1 of its potential returns per unit of risk. Odontoprev SA is currently generating about 0.05 per unit of risk. If you would invest 8,065 in Berkshire Hathaway on August 27, 2024 and sell it today you would earn a total of 5,755 from holding Berkshire Hathaway or generate 71.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Berkshire Hathaway vs. Odontoprev SA
Performance |
| Timeline |
| Berkshire Hathaway |
| Odontoprev SA |
Berkshire Hathaway and Odontoprev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Odontoprev
The main advantage of trading using opposite Berkshire Hathaway and Odontoprev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Odontoprev 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 Odontoprev will offset losses from the drop in Odontoprev's long position.| Berkshire Hathaway vs. Caixa Seguridade Participaes | Berkshire Hathaway vs. Porto Seguro SA | Berkshire Hathaway vs. BTG Pactual Logstica | Berkshire Hathaway vs. Plano Plano Desenvolvimento |
| Odontoprev vs. Engie Brasil Energia | Odontoprev vs. WEG SA | Odontoprev vs. Ambev SA | Odontoprev vs. M Dias Branco |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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