Correlation Between BERKSHIRE and Nasdaq
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By analyzing existing cross correlation between BERKSHIRE HATHAWAY ENERGY and Nasdaq Inc, you can compare the effects of market volatilities on BERKSHIRE and Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of BERKSHIRE and Nasdaq.
Diversification Opportunities for BERKSHIRE and Nasdaq
Average diversification
The 3 months correlation between BERKSHIRE and Nasdaq is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding BERKSHIRE HATHAWAY ENERGY and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of BERKSHIRE i.e., BERKSHIRE and Nasdaq go up and down completely randomly.
Pair Corralation between BERKSHIRE and Nasdaq
Assuming the 90 days trading horizon BERKSHIRE HATHAWAY ENERGY is expected to under-perform the Nasdaq. But the bond apears to be less risky and, when comparing its historical volatility, BERKSHIRE HATHAWAY ENERGY is 4.13 times less risky than Nasdaq. The bond trades about -0.18 of its potential returns per unit of risk. The Nasdaq Inc is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 7,589 in Nasdaq Inc on August 30, 2024 and sell it today you would earn a total of 716.00 from holding Nasdaq Inc or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BERKSHIRE HATHAWAY ENERGY vs. Nasdaq Inc
Performance |
| Timeline |
| BERKSHIRE HATHAWAY ENERGY |
| Nasdaq Inc |
BERKSHIRE and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BERKSHIRE and Nasdaq
The main advantage of trading using opposite BERKSHIRE and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BERKSHIRE position performs unexpectedly, Nasdaq 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 Nasdaq will offset losses from the drop in Nasdaq's long position.| BERKSHIRE vs. Academy Sports Outdoors | BERKSHIRE vs. Femasys | BERKSHIRE vs. Microbot Medical | BERKSHIRE vs. United Guardian |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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