Correlation Between Boiron SA and Berkshire Hathaway
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By analyzing existing cross correlation between Boiron SA and Berkshire Hathaway, you can compare the effects of market volatilities on Boiron SA and Berkshire Hathaway 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 Boiron SA with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and Berkshire Hathaway.
Diversification Opportunities for Boiron SA and Berkshire Hathaway
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boiron and Berkshire is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Boiron SA and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Boiron SA 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 Boiron SA are associated (or correlated) with Berkshire Hathaway. 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 has no effect on the direction of Boiron SA i.e., Boiron SA and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Boiron SA and Berkshire Hathaway
Assuming the 90 days horizon Boiron SA is expected to generate 3.92 times more return on investment than Berkshire Hathaway. However, Boiron SA is 3.92 times more volatile than Berkshire Hathaway. It trades about -0.08 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about -0.39 per unit of risk. If you would invest 2,765 in Boiron SA on September 26, 2024 and sell it today you would lose (140.00) from holding Boiron SA or give up 5.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Boiron SA vs. Berkshire Hathaway
Performance |
Timeline |
Boiron SA |
Berkshire Hathaway |
Boiron SA and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boiron SA and Berkshire Hathaway
The main advantage of trading using opposite Boiron SA and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron SA position performs unexpectedly, Berkshire Hathaway 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 Hathaway will offset losses from the drop in Berkshire Hathaway's long position.The idea behind Boiron SA and Berkshire Hathaway 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 Hathaway vs. Allianz SE VNA | Berkshire Hathaway vs. AXA SA | Berkshire Hathaway vs. Assicurazioni Generali SpA | Berkshire Hathaway vs. The Hartford Financial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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