Correlation Between Berkshire Hathaway and Thyssenkrupp
Specify exactly 2 symbols:
By analyzing existing cross correlation between Berkshire Hathaway and thyssenkrupp AG, you can compare the effects of market volatilities on Berkshire Hathaway and Thyssenkrupp 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 Hathaway with a short position of Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Thyssenkrupp.
Diversification Opportunities for Berkshire Hathaway and Thyssenkrupp
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Berkshire and Thyssenkrupp is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG and Berkshire Hathaway 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 are associated (or correlated) with Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Thyssenkrupp go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Thyssenkrupp
Assuming the 90 days trading horizon Berkshire Hathaway is expected to under-perform the Thyssenkrupp. But the stock apears to be less risky and, when comparing its historical volatility, Berkshire Hathaway is 2.27 times less risky than Thyssenkrupp. The stock trades about -0.4 of its potential returns per unit of risk. The thyssenkrupp AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 388.00 in thyssenkrupp AG on September 25, 2024 and sell it today you would earn a total of 2.00 from holding thyssenkrupp AG or generate 0.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Berkshire Hathaway vs. thyssenkrupp AG
Performance |
Timeline |
Berkshire Hathaway |
thyssenkrupp AG |
Berkshire Hathaway and Thyssenkrupp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Berkshire Hathaway and Thyssenkrupp
The main advantage of trading using opposite Berkshire Hathaway and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.Berkshire Hathaway vs. Perma Fix Environmental Services | Berkshire Hathaway vs. Nordic Semiconductor ASA | Berkshire Hathaway vs. GFL ENVIRONM | Berkshire Hathaway vs. Boiron SA |
Thyssenkrupp vs. Allegheny Technologies Incorporated | Thyssenkrupp vs. China International Marine | Thyssenkrupp vs. thyssenkrupp AG | Thyssenkrupp vs. Mueller Industries |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |