Correlation Between Condor Energies and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Condor Energies and Berkshire Hathaway at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Condor Energies and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Energies and Berkshire Hathaway CDR, you can compare the effects of market volatilities on Condor Energies and Berkshire Hathaway 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 Condor Energies with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and Berkshire Hathaway.
Diversification Opportunities for Condor Energies and Berkshire Hathaway
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Condor and Berkshire is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and Berkshire Hathaway CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway CDR and Condor Energies 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 Condor Energies are associated (or correlated) with Berkshire Hathaway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Hathaway CDR has no effect on the direction of Condor Energies i.e., Condor Energies and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Condor Energies and Berkshire Hathaway
Assuming the 90 days trading horizon Condor Energies is expected to generate 7.16 times more return on investment than Berkshire Hathaway. However, Condor Energies is 7.16 times more volatile than Berkshire Hathaway CDR. It trades about 0.08 of its potential returns per unit of risk. Berkshire Hathaway CDR is currently generating about 0.11 per unit of risk. If you would invest 70.00 in Condor Energies on September 2, 2024 and sell it today you would earn a total of 164.00 from holding Condor Energies or generate 234.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Condor Energies vs. Berkshire Hathaway CDR
Performance |
| Timeline |
| Condor Energies |
| Berkshire Hathaway CDR |
Condor Energies and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Condor Energies and Berkshire Hathaway
The main advantage of trading using opposite Condor Energies and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Energies position performs unexpectedly, Berkshire Hathaway 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 Berkshire Hathaway will offset losses from the drop in Berkshire Hathaway's long position.| Condor Energies vs. Maple Peak Investments | Condor Energies vs. Canaf Investments | Condor Energies vs. Solid Impact Investments | Condor Energies vs. Highwood Asset Management |
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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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