Correlation Between BERKSHIRE HATHAWAY and Enstar Group
Can any of the company-specific risk be diversified away by investing in both BERKSHIRE HATHAWAY and Enstar Group 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 Enstar Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BERKSHIRE HATHAWAY INC and Enstar Group Limited, you can compare the effects of market volatilities on BERKSHIRE HATHAWAY and Enstar Group 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 Enstar Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BERKSHIRE HATHAWAY and Enstar Group.
Diversification Opportunities for BERKSHIRE HATHAWAY and Enstar Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BERKSHIRE and Enstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BERKSHIRE HATHAWAY INC and Enstar Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enstar Group Limited 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 INC are associated (or correlated) with Enstar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enstar Group Limited has no effect on the direction of BERKSHIRE HATHAWAY i.e., BERKSHIRE HATHAWAY and Enstar Group go up and down completely randomly.
Pair Corralation between BERKSHIRE HATHAWAY and Enstar Group
If you would invest (100.00) in BERKSHIRE HATHAWAY INC on January 19, 2024 and sell it today you would earn a total of 100.00 from holding BERKSHIRE HATHAWAY INC or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BERKSHIRE HATHAWAY INC vs. Enstar Group Limited
Performance |
Timeline |
BERKSHIRE HATHAWAY INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enstar Group Limited |
BERKSHIRE HATHAWAY and Enstar Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BERKSHIRE HATHAWAY and Enstar Group
The main advantage of trading using opposite BERKSHIRE HATHAWAY and Enstar Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BERKSHIRE HATHAWAY position performs unexpectedly, Enstar Group 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 Enstar Group will offset losses from the drop in Enstar Group's long position.BERKSHIRE HATHAWAY vs. Enstar Group Limited | BERKSHIRE HATHAWAY vs. Fidelis Insurance Holdings | BERKSHIRE HATHAWAY vs. Aegon NV ADR | BERKSHIRE HATHAWAY vs. American International Group |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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