Correlation Between Berkshire Hathaway and Financial Strategies
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Financial Strategies 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 Financial Strategies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Financial Strategies Acquisition, you can compare the effects of market volatilities on Berkshire Hathaway and Financial Strategies 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 Financial Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Financial Strategies.
Diversification Opportunities for Berkshire Hathaway and Financial Strategies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Berkshire and Financial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Financial Strategies Acquisiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Strategies 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 Financial Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Strategies has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Financial Strategies go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Financial Strategies
If you would invest 71,200,000 in Berkshire Hathaway on November 28, 2024 and sell it today you would earn a total of 2,899,800 from holding Berkshire Hathaway or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Financial Strategies Acquisiti
Performance |
| Timeline |
| Berkshire Hathaway |
| Financial Strategies |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Berkshire Hathaway and Financial Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Financial Strategies
The main advantage of trading using opposite Berkshire Hathaway and Financial Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Financial Strategies 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 Financial Strategies will offset losses from the drop in Financial Strategies' long position.| Berkshire Hathaway vs. American International Group | Berkshire Hathaway vs. Arch Capital Group | Berkshire Hathaway vs. Sun Life Financial | Berkshire Hathaway vs. Hartford Financial Services |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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