Correlation Between Berkshire Hathaway and Identiv
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By analyzing existing cross correlation between Berkshire Hathaway and Identiv, you can compare the effects of market volatilities on Berkshire Hathaway and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Identiv.
Diversification Opportunities for Berkshire Hathaway and Identiv
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Berkshire and Identiv is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Identiv go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Identiv
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 1.89 times less return on investment than Identiv. But when comparing it to its historical volatility, Berkshire Hathaway is 1.7 times less risky than Identiv. It trades about 0.21 of its potential returns per unit of risk. Identiv is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Identiv or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Identiv
Performance |
| Timeline |
| Berkshire Hathaway |
| Identiv |
Berkshire Hathaway and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Identiv
The main advantage of trading using opposite Berkshire Hathaway and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.The idea behind Berkshire Hathaway and Identiv pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Identiv vs. VIRG NATL BANKSH | Identiv vs. CDN IMPERIAL BANK | Identiv vs. UNITED UTILITIES GR | Identiv vs. Ameriprise Financial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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