Correlation Between Berkshire Hathaway and Northern Data
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By analyzing existing cross correlation between Berkshire Hathaway and Northern Data AG, you can compare the effects of market volatilities on Berkshire Hathaway and Northern Data 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 Northern Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Northern Data.
Diversification Opportunities for Berkshire Hathaway and Northern Data
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berkshire and Northern is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Northern Data AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Data AG 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 Northern Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Data AG has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Northern Data go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Northern Data
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 7.13 times less return on investment than Northern Data. But when comparing it to its historical volatility, Berkshire Hathaway is 3.03 times less risky than Northern Data. It trades about 0.04 of its potential returns per unit of risk. Northern Data AG is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,435 in Northern Data AG on October 26, 2024 and sell it today you would earn a total of 275.00 from holding Northern Data AG or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. Northern Data AG
Performance |
| Timeline |
| Berkshire Hathaway |
| Northern Data AG |
Berkshire Hathaway and Northern Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Northern Data
The main advantage of trading using opposite Berkshire Hathaway and Northern Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Northern Data 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 Northern Data will offset losses from the drop in Northern Data's long position.| Berkshire Hathaway vs. MACOM Technology Solutions | Berkshire Hathaway vs. Xinhua Winshare Publishing | Berkshire Hathaway vs. Check Point Software | Berkshire Hathaway vs. Wayside Technology Group |
| Northern Data vs. Samsung Electronics Co | Northern Data vs. Samsung Electronics Co | Northern Data vs. Berkshire Hathaway | Northern Data vs. Berkshire Hathaway |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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