Correlation Between Clear Media and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Clear Media 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 Clear Media and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Media Limited and Berkshire Hathaway, you can compare the effects of market volatilities on Clear Media 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 Clear Media with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Media and Berkshire Hathaway.
Diversification Opportunities for Clear Media and Berkshire Hathaway
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clear and Berkshire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clear Media Limited and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Clear Media 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 Clear Media 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 Clear Media i.e., Clear Media and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Clear Media and Berkshire Hathaway
If you would invest (100.00) in Clear Media Limited on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Clear Media Limited 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 |
Clear Media Limited vs. Berkshire Hathaway
Performance |
| Timeline |
| Clear Media Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Berkshire Hathaway |
Clear Media and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Media and Berkshire Hathaway
The main advantage of trading using opposite Clear Media and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Media 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.| Clear Media vs. Weibo Corp | Clear Media vs. Albertsons Companies | Clear Media vs. Definitive Healthcare Corp | Clear Media vs. Marfrig Global Foods |
| Berkshire Hathaway vs. American International Group | Berkshire Hathaway vs. Sun Life Financial | Berkshire Hathaway vs. Arch Capital Group | Berkshire Hathaway vs. Hartford Financial Services |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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