Correlation Between BW Offshore and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both BW Offshore 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 BW Offshore and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW Offshore Limited and Berkshire Hathaway, you can compare the effects of market volatilities on BW Offshore 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 BW Offshore with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Berkshire Hathaway.
Diversification Opportunities for BW Offshore and Berkshire Hathaway
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BGSWF and Berkshire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and BW Offshore 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 BW Offshore Limited 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 BW Offshore i.e., BW Offshore and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between BW Offshore and Berkshire Hathaway
If you would invest 48,922,500 in Berkshire Hathaway on January 25, 2024 and sell it today you would earn a total of 12,595,000 from holding Berkshire Hathaway or generate 25.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BW Offshore Limited vs. Berkshire Hathaway
Performance |
| Timeline |
| BW Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Berkshire Hathaway |
BW Offshore and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW Offshore and Berkshire Hathaway
The main advantage of trading using opposite BW Offshore and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore 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.| BW Offshore vs. SEI Investments | BW Offshore vs. United Parks Resorts | BW Offshore vs. Artisan Partners Asset | BW Offshore vs. AssetMark Financial Holdings |
| Berkshire Hathaway vs. Stevia Nutra Corp | Berkshire Hathaway vs. Regent Ventures | Berkshire Hathaway vs. Element Global | Berkshire Hathaway vs. Affiliated Resources Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |