Correlation Between AECOM TECHNOLOGY and Berkshire Hathaway
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By analyzing existing cross correlation between AECOM TECHNOLOGY and Berkshire Hathaway, you can compare the effects of market volatilities on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and Berkshire Hathaway.
Diversification Opportunities for AECOM TECHNOLOGY and Berkshire Hathaway
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AECOM and Berkshire is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 has no effect on the direction of AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between AECOM TECHNOLOGY and Berkshire Hathaway
Assuming the 90 days trading horizon AECOM TECHNOLOGY is expected to under-perform the Berkshire Hathaway. But the stock apears to be less risky and, when comparing its historical volatility, AECOM TECHNOLOGY is 1.01 times less risky than Berkshire Hathaway. The stock trades about -0.14 of its potential returns per unit of risk. The Berkshire Hathaway is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 43,820 in Berkshire Hathaway on November 7, 2024 and sell it today you would earn a total of 1,185 from holding Berkshire Hathaway or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AECOM TECHNOLOGY vs. Berkshire Hathaway
Performance |
| Timeline |
| AECOM TECHNOLOGY |
| Berkshire Hathaway |
AECOM TECHNOLOGY and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AECOM TECHNOLOGY and Berkshire Hathaway
The main advantage of trading using opposite AECOM TECHNOLOGY and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY 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.| AECOM TECHNOLOGY vs. T Mobile | AECOM TECHNOLOGY vs. SOCKET MOBILE NEW | AECOM TECHNOLOGY vs. Infrastrutture Wireless Italiane | AECOM TECHNOLOGY vs. Cairo Communication SpA |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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