Correlation Between Western Acquisition and BERKSHIRE
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By analyzing existing cross correlation between Western Acquisition Ventures and BERKSHIRE HATHAWAY ENERGY, you can compare the effects of market volatilities on Western Acquisition 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 Western Acquisition with a short position of BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and BERKSHIRE.
Diversification Opportunities for Western Acquisition and BERKSHIRE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and BERKSHIRE is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and BERKSHIRE HATHAWAY ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY ENERGY and Western Acquisition 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 Western Acquisition Ventures 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 ENERGY has no effect on the direction of Western Acquisition i.e., Western Acquisition and BERKSHIRE go up and down completely randomly.
Pair Corralation between Western Acquisition and BERKSHIRE
Given the investment horizon of 90 days Western Acquisition Ventures is expected to under-perform the BERKSHIRE. In addition to that, Western Acquisition is 2.15 times more volatile than BERKSHIRE HATHAWAY ENERGY. It trades about -0.13 of its total potential returns per unit of risk. BERKSHIRE HATHAWAY ENERGY is currently generating about -0.17 per unit of volatility. If you would invest 9,544 in BERKSHIRE HATHAWAY ENERGY on September 4, 2024 and sell it today you would lose (222.00) from holding BERKSHIRE HATHAWAY ENERGY or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Western Acquisition Ventures vs. BERKSHIRE HATHAWAY ENERGY
Performance |
| Timeline |
| Western Acquisition |
| BERKSHIRE HATHAWAY ENERGY |
Western Acquisition and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and BERKSHIRE
The main advantage of trading using opposite Western Acquisition and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition 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.The idea behind Western Acquisition Ventures and BERKSHIRE HATHAWAY ENERGY pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BERKSHIRE vs. Dennys Corp | BERKSHIRE vs. Perseus Mining Limited | BERKSHIRE vs. Western Acquisition Ventures | BERKSHIRE vs. Rave Restaurant Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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