Correlation Between Southwest Gas and BERKSHIRE
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By analyzing existing cross correlation between Southwest Gas Holdings and BERKSHIRE HATHAWAY FIN, you can compare the effects of market volatilities on Southwest Gas 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 Southwest Gas with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Gas and BERKSHIRE.
Diversification Opportunities for Southwest Gas and BERKSHIRE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southwest and BERKSHIRE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Gas Holdings 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 Southwest Gas 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 Southwest Gas Holdings 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 Southwest Gas i.e., Southwest Gas and BERKSHIRE go up and down completely randomly.
Pair Corralation between Southwest Gas and BERKSHIRE
Considering the 90-day investment horizon Southwest Gas Holdings is expected to generate 1.39 times more return on investment than BERKSHIRE. However, Southwest Gas is 1.39 times more volatile than BERKSHIRE HATHAWAY FIN. It trades about 0.07 of its potential returns per unit of risk. BERKSHIRE HATHAWAY FIN is currently generating about 0.0 per unit of risk. If you would invest 5,867 in Southwest Gas Holdings on September 3, 2024 and sell it today you would earn a total of 1,949 from holding Southwest Gas Holdings or generate 33.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Southwest Gas Holdings vs. BERKSHIRE HATHAWAY FIN
Performance |
| Timeline |
| Southwest Gas Holdings |
| BERKSHIRE HATHAWAY FIN |
Southwest Gas and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Gas and BERKSHIRE
The main advantage of trading using opposite Southwest Gas and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Gas 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.| Southwest Gas vs. NewJersey Resources | Southwest Gas vs. Northwest Natural Gas | Southwest Gas vs. NorthWestern | Southwest Gas vs. Chesapeake Utilities |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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