Correlation Between Ligand Pharms and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Ligand Pharms 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 Ligand Pharms and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ligand Pharms Glucagon and Berkshire Hathaway, you can compare the effects of market volatilities on Ligand Pharms 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 Ligand Pharms with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligand Pharms and Berkshire Hathaway.
Diversification Opportunities for Ligand Pharms and Berkshire Hathaway
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ligand and Berkshire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ligand Pharms Glucagon and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Ligand Pharms 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 Ligand Pharms Glucagon 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 Ligand Pharms i.e., Ligand Pharms and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Ligand Pharms and Berkshire Hathaway
If you would invest 0.70 in Ligand Pharms Glucagon on January 21, 2024 and sell it today you would lose (0.55) from holding Ligand Pharms Glucagon or give up 78.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ligand Pharms Glucagon vs. Berkshire Hathaway
Performance |
| Timeline |
| Ligand Pharms Glucagon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Berkshire Hathaway |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ligand Pharms and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligand Pharms and Berkshire Hathaway
The main advantage of trading using opposite Ligand Pharms and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligand Pharms 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.| Ligand Pharms vs. Group Ten Metals | Ligand Pharms vs. Ascendant Resources | Ligand Pharms vs. Atico Mining | Ligand Pharms vs. Prime Mining Corp |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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