Correlation Between Estee Lauder and BERKSHIRE
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By analyzing existing cross correlation between Estee Lauder Companies and BERKSHIRE HATHAWAY FIN, you can compare the effects of market volatilities on Estee Lauder and BERKSHIRE 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 Estee Lauder with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and BERKSHIRE.
Diversification Opportunities for Estee Lauder and BERKSHIRE
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Estee and BERKSHIRE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies and BERKSHIRE HATHAWAY FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY FIN and Estee Lauder 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 Estee Lauder Companies are associated (or correlated) with BERKSHIRE. 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 FIN has no effect on the direction of Estee Lauder i.e., Estee Lauder and BERKSHIRE go up and down completely randomly.
Pair Corralation between Estee Lauder and BERKSHIRE
Allowing for the 90-day total investment horizon Estee Lauder Companies is expected to under-perform the BERKSHIRE. In addition to that, Estee Lauder is 2.33 times more volatile than BERKSHIRE HATHAWAY FIN. It trades about -0.08 of its total potential returns per unit of risk. BERKSHIRE HATHAWAY FIN is currently generating about 0.0 per unit of volatility. If you would invest 9,538 in BERKSHIRE HATHAWAY FIN on September 3, 2024 and sell it today you would lose (368.00) from holding BERKSHIRE HATHAWAY FIN or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Estee Lauder Companies vs. BERKSHIRE HATHAWAY FIN
Performance |
| Timeline |
| Estee Lauder Companies |
| BERKSHIRE HATHAWAY FIN |
Estee Lauder and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and BERKSHIRE
The main advantage of trading using opposite Estee Lauder and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder position performs unexpectedly, BERKSHIRE 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 will offset losses from the drop in BERKSHIRE's long position.| Estee Lauder vs. Honest Company | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. Procter Gamble | Estee Lauder vs. Coty Inc |
| BERKSHIRE vs. Simon Property Group | BERKSHIRE vs. Hudson Technologies | BERKSHIRE vs. Mativ Holdings | BERKSHIRE vs. Axalta Coating Systems |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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