Correlation Between Berkshire Hathaway and Christian Dior
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By analyzing existing cross correlation between Berkshire Hathaway and Christian Dior SE, you can compare the effects of market volatilities on Berkshire Hathaway and Christian Dior 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 Christian Dior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Christian Dior.
Diversification Opportunities for Berkshire Hathaway and Christian Dior
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berkshire and Christian is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Christian Dior SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Christian Dior SE 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 Christian Dior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Christian Dior SE has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Christian Dior go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Christian Dior
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 0.75 times more return on investment than Christian Dior. However, Berkshire Hathaway is 1.34 times less risky than Christian Dior. It trades about 0.05 of its potential returns per unit of risk. Christian Dior SE is currently generating about 0.02 per unit of risk. If you would invest 42,320 in Berkshire Hathaway on September 26, 2024 and sell it today you would earn a total of 1,045 from holding Berkshire Hathaway or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Christian Dior SE
Performance |
| Timeline |
| Berkshire Hathaway |
| Christian Dior SE |
Berkshire Hathaway and Christian Dior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Christian Dior
The main advantage of trading using opposite Berkshire Hathaway and Christian Dior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Christian Dior 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 Christian Dior will offset losses from the drop in Christian Dior's long position.| Berkshire Hathaway vs. Allianz SE VNA | Berkshire Hathaway vs. AXA SA | Berkshire Hathaway vs. Assicurazioni Generali SpA | Berkshire Hathaway vs. The Hartford Financial |
| Christian Dior vs. LVMH Mot Hennessy | Christian Dior vs. Herms International Socit | Christian Dior vs. CHRISTIAN DIOR ADR14EO2 | Christian Dior vs. The Swatch Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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