Correlation Between NH Foods and BERKSHIRE
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By analyzing existing cross correlation between NH Foods Ltd and BERKSHIRE HATHAWAY FIN, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and BERKSHIRE.
Diversification Opportunities for NH Foods and BERKSHIRE
Pay attention - limited upside
The 3 months correlation between NIPMY and BERKSHIRE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd 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 NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and BERKSHIRE go up and down completely randomly.
Pair Corralation between NH Foods and BERKSHIRE
Assuming the 90 days horizon NH Foods Ltd is expected to generate 0.38 times more return on investment than BERKSHIRE. However, NH Foods Ltd is 2.63 times less risky than BERKSHIRE. It trades about 0.07 of its potential returns per unit of risk. BERKSHIRE HATHAWAY FIN is currently generating about -0.01 per unit of risk. If you would invest 1,509 in NH Foods Ltd on September 12, 2024 and sell it today you would earn a total of 191.00 from holding NH Foods Ltd or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. BERKSHIRE HATHAWAY FIN
Performance |
| Timeline |
| NH Foods |
| BERKSHIRE HATHAWAY FIN |
NH Foods and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and BERKSHIRE
The main advantage of trading using opposite NH Foods and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.The idea behind NH Foods Ltd and BERKSHIRE HATHAWAY FIN pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BERKSHIRE vs. Advanced Micro Devices | BERKSHIRE vs. NH Foods Ltd | BERKSHIRE vs. Marfrig Global Foods | BERKSHIRE vs. Sligro Food Group |
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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