Correlation Between Berkshire Hathaway and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Virtus AllianzGI 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 Virtus AllianzGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Berkshire Hathaway and Virtus AllianzGI 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 Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Virtus AllianzGI.
Diversification Opportunities for Berkshire Hathaway and Virtus AllianzGI
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and Virtus is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con 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 Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Virtus AllianzGI
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 1.7 times more return on investment than Virtus AllianzGI. However, Berkshire Hathaway is 1.7 times more volatile than Virtus AllianzGI Convertible. It trades about 0.14 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about -0.16 per unit of risk. If you would invest 45,849 in Berkshire Hathaway on August 28, 2024 and sell it today you would earn a total of 1,894 from holding Berkshire Hathaway or generate 4.13% 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. Virtus AllianzGI Convertible
Performance |
| Timeline |
| Berkshire Hathaway |
| Virtus AllianzGI Con |
Berkshire Hathaway and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Virtus AllianzGI
The main advantage of trading using opposite Berkshire Hathaway and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Virtus AllianzGI 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 Virtus AllianzGI will offset losses from the drop in Virtus AllianzGI'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 |
| Virtus AllianzGI vs. The Gabelli Multimedia | Virtus AllianzGI vs. The Gabelli Multimedia | Virtus AllianzGI vs. The Gabelli Dividend | Virtus AllianzGI vs. The Gabelli Equity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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