Correlation Between BERKSHIRE and 00108WAF7
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By analyzing existing cross correlation between BERKSHIRE HATHAWAY FIN and AEP TEX INC, you can compare the effects of market volatilities on BERKSHIRE and 00108WAF7 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 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of BERKSHIRE and 00108WAF7.
Diversification Opportunities for BERKSHIRE and 00108WAF7
Significant diversification
The 3 months correlation between BERKSHIRE and 00108WAF7 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BERKSHIRE HATHAWAY FIN and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX 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 FIN are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of BERKSHIRE i.e., BERKSHIRE and 00108WAF7 go up and down completely randomly.
Pair Corralation between BERKSHIRE and 00108WAF7
Assuming the 90 days trading horizon BERKSHIRE HATHAWAY FIN is expected to generate 0.37 times more return on investment than 00108WAF7. However, BERKSHIRE HATHAWAY FIN is 2.71 times less risky than 00108WAF7. It trades about 0.17 of its potential returns per unit of risk. AEP TEX INC is currently generating about -0.04 per unit of risk. If you would invest 9,292 in BERKSHIRE HATHAWAY FIN on August 30, 2024 and sell it today you would earn a total of 622.00 from holding BERKSHIRE HATHAWAY FIN or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 65.22% |
| Values | Daily Returns |
BERKSHIRE HATHAWAY FIN vs. AEP TEX INC
Performance |
| Timeline |
| BERKSHIRE HATHAWAY FIN |
| AEP TEX INC |
BERKSHIRE and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BERKSHIRE and 00108WAF7
The main advantage of trading using opposite BERKSHIRE and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BERKSHIRE position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| BERKSHIRE vs. Western Digital | BERKSHIRE vs. JD Sports Fashion | BERKSHIRE vs. NETGEAR | BERKSHIRE vs. Meiwu Technology Co |
| 00108WAF7 vs. Esperion Therapeutics | 00108WAF7 vs. Emerson Electric | 00108WAF7 vs. Merit Medical Systems | 00108WAF7 vs. Primoris Services |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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