Correlation Between BERKSHIRE and Skechers USA
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By analyzing existing cross correlation between BERKSHIRE HATHAWAY ENERGY and Skechers USA, you can compare the effects of market volatilities on BERKSHIRE and Skechers USA 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 BERKSHIRE with a short position of Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BERKSHIRE and Skechers USA.
Diversification Opportunities for BERKSHIRE and Skechers USA
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BERKSHIRE and Skechers is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BERKSHIRE HATHAWAY ENERGY and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA and BERKSHIRE 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 BERKSHIRE HATHAWAY ENERGY are associated (or correlated) with Skechers USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skechers USA has no effect on the direction of BERKSHIRE i.e., BERKSHIRE and Skechers USA go up and down completely randomly.
Pair Corralation between BERKSHIRE and Skechers USA
Assuming the 90 days trading horizon BERKSHIRE HATHAWAY ENERGY is expected to generate 0.39 times more return on investment than Skechers USA. However, BERKSHIRE HATHAWAY ENERGY is 2.55 times less risky than Skechers USA. It trades about 0.17 of its potential returns per unit of risk. Skechers USA is currently generating about -0.24 per unit of risk. If you would invest 7,505 in BERKSHIRE HATHAWAY ENERGY on November 28, 2024 and sell it today you would earn a total of 318.00 from holding BERKSHIRE HATHAWAY ENERGY or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
BERKSHIRE HATHAWAY ENERGY vs. Skechers USA
Performance |
| Timeline |
| BERKSHIRE HATHAWAY ENERGY |
| Skechers USA |
BERKSHIRE and Skechers USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BERKSHIRE and Skechers USA
The main advantage of trading using opposite BERKSHIRE and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BERKSHIRE position performs unexpectedly, Skechers USA 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 Skechers USA will offset losses from the drop in Skechers USA's long position.| BERKSHIRE vs. Genfit | BERKSHIRE vs. Regeneron Pharmaceuticals | BERKSHIRE vs. Montauk Renewables | BERKSHIRE vs. American Electric Power |
| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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