Correlation Between Berkshire Hathaway and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Calibre Mining 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 Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway CDR and Calibre Mining Corp, you can compare the effects of market volatilities on Berkshire Hathaway and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Calibre Mining.
Diversification Opportunities for Berkshire Hathaway and Calibre Mining
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and Calibre is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway CDR and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 CDR are associated (or correlated) with Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Calibre Mining go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Calibre Mining
Assuming the 90 days trading horizon Berkshire Hathaway CDR is expected to generate 0.53 times more return on investment than Calibre Mining. However, Berkshire Hathaway CDR is 1.87 times less risky than Calibre Mining. It trades about 0.13 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.15 per unit of risk. If you would invest 3,461 in Berkshire Hathaway CDR on August 25, 2024 and sell it today you would earn a total of 139.00 from holding Berkshire Hathaway CDR or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway CDR vs. Calibre Mining Corp
Performance |
| Timeline |
| Berkshire Hathaway CDR |
| Calibre Mining Corp |
Berkshire Hathaway and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Calibre Mining
The main advantage of trading using opposite Berkshire Hathaway and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| Berkshire Hathaway vs. Walmart Inc CDR | Berkshire Hathaway vs. Amazon CDR | Berkshire Hathaway vs. UPS CDR | Berkshire Hathaway vs. HOME DEPOT CDR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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