Correlation Between CITIC Securities and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both CITIC Securities and Berkshire Hathaway 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 CITIC Securities and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC Securities and Berkshire Hathaway, you can compare the effects of market volatilities on CITIC Securities 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 CITIC Securities with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Securities and Berkshire Hathaway.
Diversification Opportunities for CITIC Securities and Berkshire Hathaway
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITIC and Berkshire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Securities and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and CITIC Securities 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 CITIC Securities 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 CITIC Securities i.e., CITIC Securities and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between CITIC Securities and Berkshire Hathaway
If you would invest 155.00 in CITIC Securities on January 26, 2024 and sell it today you would earn a total of 25.00 from holding CITIC Securities or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CITIC Securities vs. Berkshire Hathaway
Performance |
| Timeline |
| CITIC Securities |
| Berkshire Hathaway |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CITIC Securities and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Securities and Berkshire Hathaway
The main advantage of trading using opposite CITIC Securities and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Securities 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.| CITIC Securities vs. ProSiebenSat1 Media AG | CITIC Securities vs. iHeartMedia | CITIC Securities vs. ITV PLC ADR | CITIC Securities vs. Walt Disney |
| Berkshire Hathaway vs. Procter Gamble | Berkshire Hathaway vs. Academy Sports OutdoorsInc | Berkshire Hathaway vs. Marine Products | Berkshire Hathaway vs. Church Dwight |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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