Correlation Between Berkshire Hathaway and Onex Corp
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Onex Corp 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 Onex Corp 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 Onex Corp, you can compare the effects of market volatilities on Berkshire Hathaway and Onex Corp 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 Onex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Onex Corp.
Diversification Opportunities for Berkshire Hathaway and Onex Corp
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Berkshire and Onex is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway CDR and Onex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onex 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 Onex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onex Corp has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Onex Corp go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Onex Corp
Assuming the 90 days trading horizon Berkshire Hathaway CDR is expected to generate 0.54 times more return on investment than Onex Corp. However, Berkshire Hathaway CDR is 1.85 times less risky than Onex Corp. It trades about 0.17 of its potential returns per unit of risk. Onex Corp is currently generating about 0.06 per unit of risk. If you would invest 3,426 in Berkshire Hathaway CDR on October 22, 2024 and sell it today you would earn a total of 101.00 from holding Berkshire Hathaway CDR or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway CDR vs. Onex Corp
Performance |
| Timeline |
| Berkshire Hathaway CDR |
| Onex Corp |
Berkshire Hathaway and Onex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Onex Corp
The main advantage of trading using opposite Berkshire Hathaway and Onex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Onex Corp 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 Onex Corp will offset losses from the drop in Onex Corp's long position.| Berkshire Hathaway vs. VIP Entertainment Technologies | Berkshire Hathaway vs. CI Financial Corp | Berkshire Hathaway vs. Canlan Ice Sports | Berkshire Hathaway vs. Laurentian Bank |
| Onex Corp vs. Intact Financial | Onex Corp vs. Open Text Corp | Onex Corp vs. Waste Connections | Onex Corp vs. Fairfax Financial Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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