Correlation Between Steven Madden and BERKSHIRE
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By analyzing existing cross correlation between Steven Madden and BERKSHIRE HATHAWAY FIN, you can compare the effects of market volatilities on Steven Madden 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 Steven Madden with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and BERKSHIRE.
Diversification Opportunities for Steven Madden and BERKSHIRE
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Steven and BERKSHIRE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden 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 Steven Madden 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 Steven Madden 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 Steven Madden i.e., Steven Madden and BERKSHIRE go up and down completely randomly.
Pair Corralation between Steven Madden and BERKSHIRE
Given the investment horizon of 90 days Steven Madden is expected to generate 1.88 times more return on investment than BERKSHIRE. However, Steven Madden is 1.88 times more volatile than BERKSHIRE HATHAWAY FIN. It trades about 0.01 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 4,347 in Steven Madden on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Steven Madden or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.0% |
| Values | Daily Returns |
Steven Madden vs. BERKSHIRE HATHAWAY FIN
Performance |
| Timeline |
| Steven Madden |
| BERKSHIRE HATHAWAY FIN |
Steven Madden and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and BERKSHIRE
The main advantage of trading using opposite Steven Madden and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden 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.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
| BERKSHIRE vs. Compania Cervecerias Unidas | BERKSHIRE vs. Valneva SE ADR | BERKSHIRE vs. Acumen Pharmaceuticals | BERKSHIRE vs. Diageo PLC ADR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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