Correlation Between CITIGROUP CDR and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both CITIGROUP CDR 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 CITIGROUP CDR and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIGROUP CDR and Berkshire Hathaway CDR, you can compare the effects of market volatilities on CITIGROUP CDR 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 CITIGROUP CDR with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP CDR and Berkshire Hathaway.
Diversification Opportunities for CITIGROUP CDR and Berkshire Hathaway
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CITIGROUP and Berkshire is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Berkshire Hathaway CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway CDR and CITIGROUP CDR 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 CITIGROUP CDR 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 CDR has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between CITIGROUP CDR and Berkshire Hathaway
Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 1.97 times more return on investment than Berkshire Hathaway. However, CITIGROUP CDR is 1.97 times more volatile than Berkshire Hathaway CDR. It trades about 0.12 of its potential returns per unit of risk. Berkshire Hathaway CDR is currently generating about 0.04 per unit of risk. If you would invest 4,053 in CITIGROUP CDR on September 9, 2025 and sell it today you would earn a total of 478.00 from holding CITIGROUP CDR or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIGROUP CDR vs. Berkshire Hathaway CDR
Performance |
| Timeline |
| CITIGROUP CDR |
| Berkshire Hathaway CDR |
CITIGROUP CDR and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIGROUP CDR and Berkshire Hathaway
The main advantage of trading using opposite CITIGROUP CDR and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP CDR 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.| CITIGROUP CDR vs. Canlan Ice Sports | CITIGROUP CDR vs. InPlay Oil Corp | CITIGROUP CDR vs. Slate Grocery REIT | CITIGROUP CDR vs. Sangoma Technologies Corp |
| Berkshire Hathaway vs. Sun Life Non | Berkshire Hathaway vs. Sun Life Financial | Berkshire Hathaway vs. Sun Life Financial | Berkshire Hathaway vs. Brookfield Wealth Solutions |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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