Correlation Between Berkshire Hathaway and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Safestore Holdings 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 Safestore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Safestore Holdings plc, you can compare the effects of market volatilities on Berkshire Hathaway and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Safestore Holdings.
Diversification Opportunities for Berkshire Hathaway and Safestore Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berkshire and Safestore is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Safestore Holdings go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Safestore Holdings
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 0.54 times more return on investment than Safestore Holdings. However, Berkshire Hathaway is 1.84 times less risky than Safestore Holdings. It trades about 0.23 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.29 per unit of risk. If you would invest 67,696,000 in Berkshire Hathaway on September 1, 2024 and sell it today you would earn a total of 4,708,000 from holding Berkshire Hathaway or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Safestore Holdings plc
Performance |
| Timeline |
| Berkshire Hathaway |
| Safestore Holdings plc |
Berkshire Hathaway and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Safestore Holdings
The main advantage of trading using opposite Berkshire Hathaway and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' 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 |
| Safestore Holdings vs. Plymouth Industrial REIT | Safestore Holdings vs. Terreno Realty | Safestore Holdings vs. Rexford Industrial Realty | Safestore Holdings vs. National Storage Affiliates |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |