Correlation Between Berkshire Hathaway and AstraZeneca PLC
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By analyzing existing cross correlation between Berkshire Hathaway and AstraZeneca PLC, you can compare the effects of market volatilities on Berkshire Hathaway and AstraZeneca PLC 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 AstraZeneca PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and AstraZeneca PLC.
Diversification Opportunities for Berkshire Hathaway and AstraZeneca PLC
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berkshire and AstraZeneca is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and AstraZeneca PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstraZeneca PLC 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 AstraZeneca PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstraZeneca PLC has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and AstraZeneca PLC go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and AstraZeneca PLC
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 0.71 times more return on investment than AstraZeneca PLC. However, Berkshire Hathaway is 1.41 times less risky than AstraZeneca PLC. It trades about 0.38 of its potential returns per unit of risk. AstraZeneca PLC is currently generating about -0.07 per unit of risk. If you would invest 40,430 in Berkshire Hathaway on September 3, 2024 and sell it today you would earn a total of 5,500 from holding Berkshire Hathaway or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway vs. AstraZeneca PLC
Performance |
| Timeline |
| Berkshire Hathaway |
| AstraZeneca PLC |
Berkshire Hathaway and AstraZeneca PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and AstraZeneca PLC
The main advantage of trading using opposite Berkshire Hathaway and AstraZeneca PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, AstraZeneca PLC 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 AstraZeneca PLC will offset losses from the drop in AstraZeneca PLC's long position.| Berkshire Hathaway vs. Nippon Steel | Berkshire Hathaway vs. NIPPON STEEL SPADR | Berkshire Hathaway vs. MITSUBISHI STEEL MFG | Berkshire Hathaway vs. Singapore Reinsurance |
| AstraZeneca PLC vs. Eli Lilly and | AstraZeneca PLC vs. AbbVie Inc | AstraZeneca PLC vs. Pfizer Inc | AstraZeneca PLC vs. Superior Plus Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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