Correlation Between Berkshire Hathaway and Patria Investments
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Patria Investments 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 Patria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Patria Investments Limited, you can compare the effects of market volatilities on Berkshire Hathaway and Patria Investments 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 Patria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Patria Investments.
Diversification Opportunities for Berkshire Hathaway and Patria Investments
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berkshire and Patria is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Patria Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Investments 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 Patria Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Investments has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Patria Investments go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Patria Investments
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 0.58 times more return on investment than Patria Investments. However, Berkshire Hathaway is 1.73 times less risky than Patria Investments. It trades about 0.0 of its potential returns per unit of risk. Patria Investments Limited is currently generating about -0.05 per unit of risk. If you would invest 13,757 in Berkshire Hathaway on November 6, 2024 and sell it today you would lose (34.00) from holding Berkshire Hathaway or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Patria Investments Limited
Performance |
| Timeline |
| Berkshire Hathaway |
| Patria Investments |
Berkshire Hathaway and Patria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Patria Investments
The main advantage of trading using opposite Berkshire Hathaway and Patria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Patria Investments 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 Patria Investments will offset losses from the drop in Patria Investments' long position.| Berkshire Hathaway vs. Medical Properties Trust, | Berkshire Hathaway vs. Public Storage | Berkshire Hathaway vs. Automatic Data Processing | Berkshire Hathaway vs. Globus Medical, |
| Patria Investments vs. Iron Mountain Incorporated | Patria Investments vs. SVB Financial Group | Patria Investments vs. Beyond Meat | Patria Investments vs. METISA Metalrgica Timboense |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |