Correlation Between Berkshire Hathaway and ENERGY
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By analyzing existing cross correlation between Berkshire Hathaway and ENERGY TRANSFER PARTNERS, you can compare the effects of market volatilities on Berkshire Hathaway and ENERGY 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 ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and ENERGY.
Diversification Opportunities for Berkshire Hathaway and ENERGY
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and ENERGY is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and ENERGY TRANSFER PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGY TRANSFER PARTNERS 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 ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGY TRANSFER PARTNERS has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and ENERGY go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and ENERGY
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 2.61 times more return on investment than ENERGY. However, Berkshire Hathaway is 2.61 times more volatile than ENERGY TRANSFER PARTNERS. It trades about 0.1 of its potential returns per unit of risk. ENERGY TRANSFER PARTNERS is currently generating about 0.0 per unit of risk. If you would invest 31,057 in Berkshire Hathaway on August 24, 2024 and sell it today you would earn a total of 16,600 from holding Berkshire Hathaway or generate 53.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Berkshire Hathaway vs. ENERGY TRANSFER PARTNERS
Performance |
| Timeline |
| Berkshire Hathaway |
| ENERGY TRANSFER PARTNERS |
Berkshire Hathaway and ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and ENERGY
The main advantage of trading using opposite Berkshire Hathaway and ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, ENERGY 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 ENERGY will offset losses from the drop in ENERGY'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 |
| ENERGY vs. Primo Brands | ENERGY vs. National CineMedia | ENERGY vs. Oatly Group AB | ENERGY vs. KVH Industries |
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 Stocks Directory module to find actively traded stocks across global markets.
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