Correlation Between Berkshire Hathaway and WEC Energy
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By analyzing existing cross correlation between Berkshire Hathaway and WEC Energy Group, you can compare the effects of market volatilities on Berkshire Hathaway and WEC Energy 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 WEC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and WEC Energy.
Diversification Opportunities for Berkshire Hathaway and WEC Energy
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Berkshire and WEC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and WEC Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEC Energy Group 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 WEC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEC Energy Group has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and WEC Energy go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and WEC Energy
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 0.83 times more return on investment than WEC Energy. However, Berkshire Hathaway is 1.2 times less risky than WEC Energy. It trades about 0.38 of its potential returns per unit of risk. WEC Energy Group is currently generating about 0.22 per unit of risk. If you would invest 45,000 in Berkshire Hathaway on December 3, 2024 and sell it today you would earn a total of 3,805 from holding Berkshire Hathaway or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. WEC Energy Group
Performance |
| Timeline |
| Berkshire Hathaway |
| WEC Energy Group |
Berkshire Hathaway and WEC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and WEC Energy
The main advantage of trading using opposite Berkshire Hathaway and WEC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, WEC Energy 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 WEC Energy will offset losses from the drop in WEC Energy's long position.| Berkshire Hathaway vs. INTER CARS SA | Berkshire Hathaway vs. CanSino Biologics | Berkshire Hathaway vs. Maple Leaf Foods | Berkshire Hathaway vs. Cal Maine Foods |
| WEC Energy vs. T MOBILE US | WEC Energy vs. Zurich Insurance Group | WEC Energy vs. Universal Insurance Holdings | WEC Energy vs. GEAR4MUSIC LS 10 |
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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