Correlation Between Berkshire Hathaway and Symrise AG
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Symrise AG 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 Symrise AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and Symrise AG, you can compare the effects of market volatilities on Berkshire Hathaway and Symrise AG 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 Symrise AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Symrise AG.
Diversification Opportunities for Berkshire Hathaway and Symrise AG
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berkshire and Symrise is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Symrise AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symrise AG 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 Symrise AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symrise AG has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Symrise AG go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Symrise AG
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 0.43 times more return on investment than Symrise AG. However, Berkshire Hathaway is 2.32 times less risky than Symrise AG. It trades about 0.24 of its potential returns per unit of risk. Symrise AG is currently generating about -0.23 per unit of risk. If you would invest 45,092 in Berkshire Hathaway on September 1, 2024 and sell it today you would earn a total of 3,210 from holding Berkshire Hathaway or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Symrise AG
Performance |
| Timeline |
| Berkshire Hathaway |
| Symrise AG |
Berkshire Hathaway and Symrise AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Symrise AG
The main advantage of trading using opposite Berkshire Hathaway and Symrise AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Symrise AG 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 Symrise AG will offset losses from the drop in Symrise AG'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 |
| Symrise AG vs. Givaudan SA | Symrise AG vs. Olin Corporation | Symrise AG vs. International Flavors Fragrances | Symrise AG vs. Sika AG |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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