Correlation Between Berkshire Hathaway and Petrogress

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

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

Diversification Opportunities for Berkshire Hathaway and Petrogress

-0.14

Correlation Coefficient

Berkshire Hathaway  Petrogress

Good diversification

The 3 months correlation between Berkshire and Petrogress is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and Petrogress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrogress and Berkshire Hathaway 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 Berkshire Hathaway are associated (or correlated) with Petrogress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrogress has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Petrogress go up and down completely randomly.

Pair Corralation between Berkshire Hathaway and Petrogress

If you would invest  0.01  in Petrogress on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Petrogress or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Berkshire Hathaway  vs.  Petrogress

Berkshire Hathaway

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Berkshire Hathaway has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Berkshire Hathaway is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Petrogress

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Petrogress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Berkshire Hathaway and Petrogress

The main advantage of trading using opposite Berkshire Hathaway and Petrogress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Petrogress 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 Petrogress will offset losses from the drop in Petrogress' long position.

The idea behind Berkshire Hathaway and Petrogress 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.