Correlation Between Swiss Life and Berkshire Hathaway
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By analyzing existing cross correlation between Swiss Life Holding and Berkshire Hathaway, you can compare the effects of market volatilities on Swiss Life and Berkshire Hathaway 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 Swiss Life with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Life and Berkshire Hathaway.
Diversification Opportunities for Swiss Life and Berkshire Hathaway
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swiss and Berkshire is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Life Holding and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Swiss Life 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 Swiss Life Holding are associated (or correlated) with Berkshire Hathaway. 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 has no effect on the direction of Swiss Life i.e., Swiss Life and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Swiss Life and Berkshire Hathaway
Assuming the 90 days trading horizon Swiss Life Holding is expected to under-perform the Berkshire Hathaway. In addition to that, Swiss Life is 2.81 times more volatile than Berkshire Hathaway. It trades about -0.12 of its total potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.03 per unit of volatility. If you would invest 44,010 in Berkshire Hathaway on September 12, 2024 and sell it today you would earn a total of 230.00 from holding Berkshire Hathaway or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Life Holding vs. Berkshire Hathaway
Performance |
| Timeline |
| Swiss Life Holding |
| Berkshire Hathaway |
Swiss Life and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Life and Berkshire Hathaway
The main advantage of trading using opposite Swiss Life and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Life position performs unexpectedly, Berkshire Hathaway 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 Hathaway will offset losses from the drop in Berkshire Hathaway's long position.| Swiss Life vs. Carsales | Swiss Life vs. Zijin Mining Group | Swiss Life vs. MINCO SILVER | Swiss Life vs. GRIFFIN MINING LTD |
| Berkshire Hathaway vs. METHODE ELECTRONICS | Berkshire Hathaway vs. Electronic Arts | Berkshire Hathaway vs. NORWEGIAN AIR SHUT | Berkshire Hathaway vs. Enter Air SA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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