Correlation Between Berkshire Hathaway and DNB ASA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and DNB ASA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Berkshire Hathaway and DNB ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway and DNB ASA, you can compare the effects of market volatilities on Berkshire Hathaway and DNB ASA 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 DNB ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and DNB ASA.

Diversification Opportunities for Berkshire Hathaway and DNB ASA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Berkshire and DNB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and DNB ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB ASA 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 DNB ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB ASA has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and DNB ASA go up and down completely randomly.

Pair Corralation between Berkshire Hathaway and DNB ASA

If you would invest  52,900,000  in Berkshire Hathaway on December 29, 2023 and sell it today you would earn a total of  10,061,000  from holding Berkshire Hathaway or generate 19.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Berkshire Hathaway  vs.  DNB ASA

 Performance 
       Timeline  
Berkshire Hathaway 

Risk-Adjusted Performance

24 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Berkshire Hathaway are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Berkshire Hathaway sustained solid returns over the last few months and may actually be approaching a breakup point.
DNB ASA 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days DNB ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, DNB ASA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Berkshire Hathaway and DNB ASA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Berkshire Hathaway and DNB ASA

The main advantage of trading using opposite Berkshire Hathaway and DNB ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, DNB ASA 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 DNB ASA will offset losses from the drop in DNB ASA's long position.
The idea behind Berkshire Hathaway and DNB ASA 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.
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
CEOs Directory
Screen CEOs from public companies around the world
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Commodity Directory
Find actively traded commodities issued by global exchanges
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas