Berkshire Hathaway Correlations

BRK-A Stock

USD 806,684 6,384 0.80%

The current 90-days correlation between Berkshire Hathaway and Berkshire Hathaway is 0.99 (i.e., No risk reduction). The correlation of Berkshire Hathaway is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Berkshire Hathaway Correlation With Market

Very weak diversification

The correlation between Berkshire Hathaway and DJI is 0.56 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Berkshire Hathaway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Berkshire Stock

0.84	ESGR	Enstar Group Limited	Pair Corr
0.97	AIG	American International Normal Trading	Pair Corr
0.86	WDH	Waterdrop ADR	Pair Corr
0.68	IGIC	International General	Pair Corr
0.65	ESGRP	Enstar Group	Pair Corr
0.76	ATH-PA	Athene Holding	Pair Corr
0.94	ATH-PC	Athene Holding	Pair Corr
0.77	L	Loews Corp	Pair Corr
0.84	CB	Chubb	Pair Corr
0.94	DB	Deutsche Bank AG	Pair Corr

Moving against Berkshire Stock

0.67	FGF	Fundamental Global	Pair Corr
0.59	FIHL	Fidelis Insurance	Pair Corr
0.37	ATH-PD	Athene Holding	Pair Corr
0.36	SLF	Sun Life Financial	Pair Corr
0.8	BX	Blackstone Group	Pair Corr
0.73	AX	Axos Financial	Pair Corr
0.72	CG	Carlyle Group	Pair Corr
0.58	BY	Byline Bancorp	Pair Corr
0.56	DHIL	Diamond Hill Investment	Pair Corr
0.56	BN	Brookfield Corp	Pair Corr
0.35	DIST	Distoken Acquisition	Pair Corr
0.86	LC	LendingClub Corp	Pair Corr
0.81	CM	Canadian Imperial Bank	Pair Corr
0.8	MC	Moelis	Pair Corr
0.68	KB	KB Financial Group	Pair Corr

Related Correlations Analysis

	AIG	ACGL	SLF	HIG	AEG	BRK-B	EQH	ORI	GSHD
AIG		0.31	-0.32	0.97	0.47	0.97	0.34	0.89	0.81	AIG
ACGL	0.31		0.57	0.44	0.34	0.3	0.11	0.35	0.06	ACGL
SLF	-0.32	0.57		-0.25	0.03	-0.36	-0.23	-0.32	-0.53	SLF
HIG	0.97	0.44	-0.25		0.53	0.97	0.41	0.93	0.83	HIG
AEG	0.47	0.34	0.03	0.53		0.55	0.8	0.66	0.51	AEG
BRK-B	0.97	0.3	-0.36	0.97	0.55		0.45	0.92	0.84	BRK-B
EQH	0.34	0.11	-0.23	0.41	0.8	0.45		0.66	0.58	EQH
ORI	0.89	0.35	-0.32	0.93	0.66	0.92	0.66		0.88	ORI
GSHD	0.81	0.06	-0.53	0.83	0.51	0.84	0.58	0.88		GSHD
	AIG	ACGL	SLF	HIG	AEG	BRK-B	EQH	ORI	GSHD

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

HIG	+ 0.97	AIG
BRK-B	+ 0.97	AIG
BRK-B	+ 0.97	HIG
ORI	+ 0.93	HIG
ORI	+ 0.92	BRK-B
ORI	+ 0.89	AIG

High negative correlations

GSHD	- 0.53	SLF
BRK-B	- 0.36	SLF
ORI	- 0.32	SLF
SLF	- 0.32	AIG
HIG	- 0.25	SLF
EQH	- 0.23	SLF

Risk-Adjusted Indicators

There is a big difference between Berkshire Stock performing well and Berkshire Hathaway Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Berkshire Hathaway's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AIG	1.01	0.31	0.27	0.44	0.90	(1.14)	2.50	(1.59)	7.38
ACGL	1.10	0.09	0.09	0.10	1.15	(1.20)	2.65	(2.08)	6.24
SLF	0.89	0.02	0.03	(0.01)	1.42	(0.93)	2.00	(1.59)	8.71
HIG	0.86	0.21	0.21	0.27	0.86	(0.94)	2.05	(1.37)	5.00
AEG	1.21	0.26	0.09	0.18	2.44	(1.21)	2.68	(2.00)	12.41
BRK-B	0.85	0.27	0.28	0.34	0.77	(0.97)	2.05	(1.54)	6.90
EQH	1.47	0.29	0.11	0.14	2.03	(1.40)	3.32	(3.67)	9.18
ORI	0.85	0.25	0.21	0.29	0.98	(0.90)	2.16	(1.46)	6.06
GSHD	2.16	0.39	0.15	0.23	2.14	(2.41)	4.49	(3.95)	21.17

Berkshire Hathaway Corporate Management

Daniel Jaksich	Controller VP	Profile
Michael Pille	Head Casualty	Profile
Warren Buffett	CEO Chairman	Profile
Charles Munger	Ex Chairman	Profile
Ajit Jain	Vice Director	Profile
Gregory Abel	Vice Director	Profile
Kara Raiguel	CEO Unit	Profile

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