Correlation Between Berkshire Hathaway and Summa Silver
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Summa Silver 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 Summa Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Summa Silver Corp, you can compare the effects of market volatilities on Berkshire Hathaway and Summa Silver 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 Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Summa Silver.
Diversification Opportunities for Berkshire Hathaway and Summa Silver
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berkshire and Summa is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp 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 Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Summa Silver go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Summa Silver
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 0.25 times more return on investment than Summa Silver. However, Berkshire Hathaway is 4.05 times less risky than Summa Silver. It trades about 0.02 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.07 per unit of risk. If you would invest 47,683 in Berkshire Hathaway on August 31, 2024 and sell it today you would earn a total of 625.00 from holding Berkshire Hathaway or generate 1.31% 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. Summa Silver Corp
Performance |
| Timeline |
| Berkshire Hathaway |
| Summa Silver Corp |
Berkshire Hathaway and Summa Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Summa Silver
The main advantage of trading using opposite Berkshire Hathaway and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Summa Silver 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 Summa Silver will offset losses from the drop in Summa Silver'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 |
| Summa Silver vs. P2 Gold | Summa Silver vs. Enduro Metals | Summa Silver vs. Kodiak Copper Corp | Summa Silver vs. Mirasol 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |