Correlation Between Berkshire Hathaway and NISOURCE
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By analyzing existing cross correlation between Berkshire Hathaway and NISOURCE FIN P, you can compare the effects of market volatilities on Berkshire Hathaway and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and NISOURCE.
Diversification Opportunities for Berkshire Hathaway and NISOURCE
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and NISOURCE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and NISOURCE go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and NISOURCE
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 148.54 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Berkshire Hathaway is 150.39 times less risky than NISOURCE. It trades about 0.12 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,863 in NISOURCE FIN P on August 31, 2024 and sell it today you would earn a total of 189.00 from holding NISOURCE FIN P or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.44% |
| Values | Daily Returns |
Berkshire Hathaway vs. NISOURCE FIN P
Performance |
| Timeline |
| Berkshire Hathaway |
| NISOURCE FIN P |
Berkshire Hathaway and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and NISOURCE
The main advantage of trading using opposite Berkshire Hathaway and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE'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 |
| NISOURCE vs. Sun Country Airlines | NISOURCE vs. Olympic Steel | NISOURCE vs. American Airlines Group | NISOURCE vs. SunOpta |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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