Correlation Between Ameritrust Corp and Berkshire Hathaway

Can any of the company-specific risk be diversified away by investing in both Ameritrust Corp 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 Ameritrust Corp and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ameritrust Corp and Berkshire Hathaway, you can compare the effects of market volatilities on Ameritrust Corp 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 Ameritrust Corp with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameritrust Corp and Berkshire Hathaway.

Diversification Opportunities for Ameritrust Corp and Berkshire Hathaway

0.0

Correlation Coefficient

Ameritrust Corp  Berkshire Hathaway

Pay attention - limited upside

The 3 months correlation between Ameritrust and Berkshire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ameritrust Corp and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Ameritrust Corp 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 Ameritrust Corp 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 Ameritrust Corp i.e., Ameritrust Corp and Berkshire Hathaway go up and down completely randomly.

Pair Corralation between Ameritrust Corp and Berkshire Hathaway

If you would invest  0.02  in Ameritrust Corp on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Ameritrust Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ameritrust Corp  vs.  Berkshire Hathaway

Ameritrust Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ameritrust Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Ameritrust Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Berkshire Hathaway

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Berkshire Hathaway are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Berkshire Hathaway may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Ameritrust Corp and Berkshire Hathaway

The main advantage of trading using opposite Ameritrust Corp and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameritrust Corp 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.

The idea behind Ameritrust Corp and Berkshire Hathaway 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.