Correlation Between Berkshire Hathaway and CONSTELLATION
Specify exactly 2 symbols:
By analyzing existing cross correlation between Berkshire Hathaway and CONSTELLATION ENERGY GROUP, you can compare the effects of market volatilities on Berkshire Hathaway and CONSTELLATION 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 CONSTELLATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and CONSTELLATION.
Diversification Opportunities for Berkshire Hathaway and CONSTELLATION
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and CONSTELLATION is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and CONSTELLATION ENERGY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSTELLATION ENERGY 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 CONSTELLATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSTELLATION ENERGY has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and CONSTELLATION go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and CONSTELLATION
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 1.0 times more return on investment than CONSTELLATION. However, Berkshire Hathaway is 1.0 times more volatile than CONSTELLATION ENERGY GROUP. It trades about 0.2 of its potential returns per unit of risk. CONSTELLATION ENERGY GROUP is currently generating about -0.3 per unit of risk. If you would invest 45,496 in Berkshire Hathaway on August 31, 2024 and sell it today you would earn a total of 2,812 from holding Berkshire Hathaway or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Berkshire Hathaway vs. CONSTELLATION ENERGY GROUP
Performance |
| Timeline |
| Berkshire Hathaway |
| CONSTELLATION ENERGY |
Berkshire Hathaway and CONSTELLATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and CONSTELLATION
The main advantage of trading using opposite Berkshire Hathaway and CONSTELLATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, CONSTELLATION 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 CONSTELLATION will offset losses from the drop in CONSTELLATION'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 |
| CONSTELLATION vs. AEP TEX INC | CONSTELLATION vs. US BANK NATIONAL | CONSTELLATION vs. International Business Machines | CONSTELLATION vs. Intel |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |