Correlation Between Berkshire Hathaway and Hartford Financial
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By analyzing existing cross correlation between Berkshire Hathaway and The Hartford Financial, you can compare the effects of market volatilities on Berkshire Hathaway and Hartford Financial 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 Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Hartford Financial.
Diversification Opportunities for Berkshire Hathaway and Hartford Financial
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Berkshire and Hartford is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and The Hartford Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Financial 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 Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Financial has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Hartford Financial go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Hartford Financial
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 1.16 times less return on investment than Hartford Financial. But when comparing it to its historical volatility, Berkshire Hathaway is 1.05 times less risky than Hartford Financial. It trades about 0.29 of its potential returns per unit of risk. The Hartford Financial is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 10,155 in The Hartford Financial on September 5, 2024 and sell it today you would earn a total of 1,345 from holding The Hartford Financial or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. The Hartford Financial
Performance |
| Timeline |
| Berkshire Hathaway |
| The Hartford Financial |
Berkshire Hathaway and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Hartford Financial
The main advantage of trading using opposite Berkshire Hathaway and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Hartford Financial 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 Hartford Financial will offset losses from the drop in Hartford Financial's long position.| Berkshire Hathaway vs. Sixt Leasing SE | Berkshire Hathaway vs. Lendlease Group | Berkshire Hathaway vs. SBI Insurance Group | Berkshire Hathaway vs. Kaiser Aluminum |
| Hartford Financial vs. Berkshire Hathaway | Hartford Financial vs. AXA SA | Hartford Financial vs. AXA SA | Hartford Financial vs. Swiss Life Holding |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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