Correlation Between HE Equipment and BERKSHIRE
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By analyzing existing cross correlation between HE Equipment Services and BERKSHIRE HATHAWAY ENERGY, you can compare the effects of market volatilities on HE Equipment 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 HE Equipment with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and BERKSHIRE.
Diversification Opportunities for HE Equipment and BERKSHIRE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HEES and BERKSHIRE is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and BERKSHIRE HATHAWAY ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY ENERGY and HE Equipment 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 HE Equipment Services 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 ENERGY has no effect on the direction of HE Equipment i.e., HE Equipment and BERKSHIRE go up and down completely randomly.
Pair Corralation between HE Equipment and BERKSHIRE
Given the investment horizon of 90 days HE Equipment Services is expected to generate 1.52 times more return on investment than BERKSHIRE. However, HE Equipment is 1.52 times more volatile than BERKSHIRE HATHAWAY ENERGY. It trades about 0.24 of its potential returns per unit of risk. BERKSHIRE HATHAWAY ENERGY is currently generating about -0.13 per unit of risk. If you would invest 5,000 in HE Equipment Services on September 4, 2024 and sell it today you would earn a total of 835.00 from holding HE Equipment Services or generate 16.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HE Equipment Services vs. BERKSHIRE HATHAWAY ENERGY
Performance |
| Timeline |
| HE Equipment Services |
| BERKSHIRE HATHAWAY ENERGY |
HE Equipment and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and BERKSHIRE
The main advantage of trading using opposite HE Equipment and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment 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.| HE Equipment vs. GATX Corporation | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Alta Equipment Group | HE Equipment vs. Ryder System |
| BERKSHIRE vs. TFI International | BERKSHIRE vs. Eastman Kodak Co | BERKSHIRE vs. HE Equipment Services | BERKSHIRE vs. Global Ship Lease |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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