Correlation Between Fairfax Fin and TNR Gold
Can any of the company-specific risk be diversified away by investing in both Fairfax Fin and TNR Gold 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 Fairfax Fin and TNR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fairfax Fin Hld and TNR Gold Corp, you can compare the effects of market volatilities on Fairfax Fin and TNR Gold 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 Fairfax Fin with a short position of TNR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fairfax Fin and TNR Gold.
Diversification Opportunities for Fairfax Fin and TNR Gold
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fairfax and TNR is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Fin Hld and TNR Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNR Gold Corp and Fairfax Fin 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 Fairfax Fin Hld are associated (or correlated) with TNR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNR Gold Corp has no effect on the direction of Fairfax Fin i.e., Fairfax Fin and TNR Gold go up and down completely randomly.
Pair Corralation between Fairfax Fin and TNR Gold
If you would invest 5.00 in TNR Gold Corp on November 2, 2024 and sell it today you would earn a total of 0.00 from holding TNR Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fairfax Fin Hld vs. TNR Gold Corp
Performance |
| Timeline |
| Fairfax Fin Hld |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| TNR Gold Corp |
Fairfax Fin and TNR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fairfax Fin and TNR Gold
The main advantage of trading using opposite Fairfax Fin and TNR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fairfax Fin position performs unexpectedly, TNR Gold 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 TNR Gold will offset losses from the drop in TNR Gold's long position.| Fairfax Fin vs. Algoma Steel Group | Fairfax Fin vs. Global Crossing Airlines | Fairfax Fin vs. SalesforceCom CDR | Fairfax Fin vs. CVW CleanTech |
| TNR Gold vs. Goldcliff Resource Corp | TNR Gold vs. Plato Gold Corp | TNR Gold vs. VVC Exploration Corp | TNR Gold vs. CANEX Metals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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