Correlation Between Berkshire Hathaway and Granite Creek
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Granite Creek 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 Granite Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Granite Creek Copper, you can compare the effects of market volatilities on Berkshire Hathaway and Granite Creek 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 Granite Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Granite Creek.
Diversification Opportunities for Berkshire Hathaway and Granite Creek
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and Granite is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Granite Creek Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Creek Copper 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 Granite Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Creek Copper has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Granite Creek go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Granite Creek
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 0.1 times more return on investment than Granite Creek. However, Berkshire Hathaway is 10.03 times less risky than Granite Creek. It trades about 0.12 of its potential returns per unit of risk. Granite Creek Copper is currently generating about 0.0 per unit of risk. If you would invest 38,644 in Berkshire Hathaway on August 29, 2024 and sell it today you would earn a total of 9,212 from holding Berkshire Hathaway or generate 23.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Berkshire Hathaway vs. Granite Creek Copper
Performance |
| Timeline |
| Berkshire Hathaway |
| Granite Creek Copper |
Berkshire Hathaway and Granite Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Granite Creek
The main advantage of trading using opposite Berkshire Hathaway and Granite Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Granite Creek 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 Granite Creek will offset losses from the drop in Granite Creek's long position.| Berkshire Hathaway vs. American International Group | Berkshire Hathaway vs. Sun Life Financial | Berkshire Hathaway vs. Arch Capital Group | Berkshire Hathaway vs. Hartford Financial Services |
| Granite Creek vs. Macmahon Holdings Limited | Granite Creek vs. Prime Meridian Resources | Granite Creek vs. Rokmaster Resources Corp | Granite Creek vs. Hudson Resources |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |