Correlation Between Berkshire Hathaway and Menora Mivtachim
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Menora Mivtachim 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 Menora Mivtachim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Menora Mivtachim Holdings, you can compare the effects of market volatilities on Berkshire Hathaway and Menora Mivtachim 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 Menora Mivtachim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Menora Mivtachim.
Diversification Opportunities for Berkshire Hathaway and Menora Mivtachim
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and Menora is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Menora Mivtachim Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menora Mivtachim Holdings 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 Menora Mivtachim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menora Mivtachim Holdings has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Menora Mivtachim go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Menora Mivtachim
If you would invest 45,435 in Berkshire Hathaway on October 23, 2024 and sell it today you would earn a total of 1,360 from holding Berkshire Hathaway or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Berkshire Hathaway vs. Menora Mivtachim Holdings
Performance |
| Timeline |
| Berkshire Hathaway |
| Menora Mivtachim Holdings |
Berkshire Hathaway and Menora Mivtachim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Menora Mivtachim
The main advantage of trading using opposite Berkshire Hathaway and Menora Mivtachim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Menora Mivtachim 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 Menora Mivtachim will offset losses from the drop in Menora Mivtachim'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 |
| Menora Mivtachim vs. Aris Water Solutions | Menora Mivtachim vs. Celestica | Menora Mivtachim vs. Sonos Inc | Menora Mivtachim vs. Antero Midstream Partners |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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