Correlation Between Berkshire Hathaway and 693304AW7
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By analyzing existing cross correlation between Berkshire Hathaway and PECO ENERGY 39, you can compare the effects of market volatilities on Berkshire Hathaway and 693304AW7 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 693304AW7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and 693304AW7.
Diversification Opportunities for Berkshire Hathaway and 693304AW7
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and 693304AW7 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and PECO ENERGY 39 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO 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 693304AW7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and 693304AW7 go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and 693304AW7
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 0.79 times more return on investment than 693304AW7. However, Berkshire Hathaway is 1.27 times less risky than 693304AW7. It trades about 0.12 of its potential returns per unit of risk. PECO ENERGY 39 is currently generating about -0.05 per unit of risk. If you would invest 38,374 in Berkshire Hathaway on August 28, 2024 and sell it today you would earn a total of 9,369 from holding Berkshire Hathaway or generate 24.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 64.59% |
| Values | Daily Returns |
Berkshire Hathaway vs. PECO ENERGY 39
Performance |
| Timeline |
| Berkshire Hathaway |
| PECO ENERGY |
Berkshire Hathaway and 693304AW7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and 693304AW7
The main advantage of trading using opposite Berkshire Hathaway and 693304AW7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, 693304AW7 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 693304AW7 will offset losses from the drop in 693304AW7'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 |
| 693304AW7 vs. AEP TEX INC | 693304AW7 vs. US BANK NATIONAL | 693304AW7 vs. Dupont De Nemours | 693304AW7 vs. The Travelers Companies |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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