Correlation Between Berkshire Hathaway and CENTRAL PUERTO
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and CENTRAL PUERTO 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 CENTRAL PUERTO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and CENTRAL PUERTO ADR1, you can compare the effects of market volatilities on Berkshire Hathaway and CENTRAL PUERTO 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 CENTRAL PUERTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and CENTRAL PUERTO.
Diversification Opportunities for Berkshire Hathaway and CENTRAL PUERTO
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and CENTRAL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and CENTRAL PUERTO ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL PUERTO ADR1 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 CENTRAL PUERTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL PUERTO ADR1 has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and CENTRAL PUERTO go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and CENTRAL PUERTO
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 83.22 times more return on investment than CENTRAL PUERTO. However, Berkshire Hathaway is 83.22 times more volatile than CENTRAL PUERTO ADR1. It trades about 0.2 of its potential returns per unit of risk. CENTRAL PUERTO ADR1 is currently generating about 0.39 per unit of risk. If you would invest 65,850,000 in Berkshire Hathaway on September 13, 2024 and sell it today you would lose (250,000) from holding Berkshire Hathaway or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Berkshire Hathaway vs. CENTRAL PUERTO ADR1
Performance |
| Timeline |
| Berkshire Hathaway |
| CENTRAL PUERTO ADR1 |
Berkshire Hathaway and CENTRAL PUERTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and CENTRAL PUERTO
The main advantage of trading using opposite Berkshire Hathaway and CENTRAL PUERTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, CENTRAL PUERTO 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 CENTRAL PUERTO will offset losses from the drop in CENTRAL PUERTO's long position.| Berkshire Hathaway vs. INTERSHOP Communications Aktiengesellschaft | Berkshire Hathaway vs. SEI INVESTMENTS | Berkshire Hathaway vs. Gladstone Investment | Berkshire Hathaway vs. Gamma Communications plc |
| CENTRAL PUERTO vs. Chiba Bank | CENTRAL PUERTO vs. Hitachi Construction Machinery | CENTRAL PUERTO vs. Ameriprise Financial | CENTRAL PUERTO vs. HYDROFARM HLD GRP |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |