Correlation Between Old Dominion and BERKSHIRE
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By analyzing existing cross correlation between Old Dominion Freight and BERKSHIRE HATHAWAY ENERGY, you can compare the effects of market volatilities on Old Dominion 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 Old Dominion with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Dominion and BERKSHIRE.
Diversification Opportunities for Old Dominion and BERKSHIRE
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Old and BERKSHIRE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Old Dominion Freight 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 Old Dominion 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 Old Dominion Freight 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 Old Dominion i.e., Old Dominion and BERKSHIRE go up and down completely randomly.
Pair Corralation between Old Dominion and BERKSHIRE
Given the investment horizon of 90 days Old Dominion Freight is expected to generate 2.74 times more return on investment than BERKSHIRE. However, Old Dominion is 2.74 times more volatile than BERKSHIRE HATHAWAY ENERGY. It trades about 0.17 of its potential returns per unit of risk. BERKSHIRE HATHAWAY ENERGY is currently generating about 0.24 per unit of risk. If you would invest 20,399 in Old Dominion Freight on September 4, 2024 and sell it today you would earn a total of 2,086 from holding Old Dominion Freight or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Old Dominion Freight vs. BERKSHIRE HATHAWAY ENERGY
Performance |
| Timeline |
| Old Dominion Freight |
| BERKSHIRE HATHAWAY ENERGY |
Old Dominion and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Dominion and BERKSHIRE
The main advantage of trading using opposite Old Dominion and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Dominion 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.| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
| BERKSHIRE vs. Iridium Communications | BERKSHIRE vs. Sphere Entertainment Co | BERKSHIRE vs. Tarsus Pharmaceuticals | BERKSHIRE vs. Acumen Pharmaceuticals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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