Correlation Between Fairfax Financial and Altair Resources
Can any of the company-specific risk be diversified away by investing in both Fairfax Financial and Altair Resources 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 Financial and Altair Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fairfax Financial Holdings and Altair Resources, you can compare the effects of market volatilities on Fairfax Financial and Altair Resources 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 Financial with a short position of Altair Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fairfax Financial and Altair Resources.
Diversification Opportunities for Fairfax Financial and Altair Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fairfax and Altair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Financial Holdings and Altair Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Resources and Fairfax Financial 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 Financial Holdings are associated (or correlated) with Altair Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Resources has no effect on the direction of Fairfax Financial i.e., Fairfax Financial and Altair Resources go up and down completely randomly.
Pair Corralation between Fairfax Financial and Altair Resources
If you would invest 2,274 in Fairfax Financial Holdings on August 28, 2024 and sell it today you would earn a total of 241.00 from holding Fairfax Financial Holdings or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fairfax Financial Holdings vs. Altair Resources
Performance |
| Timeline |
| Fairfax Financial |
| Altair Resources |
Fairfax Financial and Altair Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fairfax Financial and Altair Resources
The main advantage of trading using opposite Fairfax Financial and Altair Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fairfax Financial position performs unexpectedly, Altair Resources 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 Altair Resources will offset losses from the drop in Altair Resources' long position.| Fairfax Financial vs. Altair Resources | Fairfax Financial vs. Orbit Garant Drilling | Fairfax Financial vs. Calian Technologies | Fairfax Financial vs. CVW CleanTech |
| Altair Resources vs. First Majestic Silver | Altair Resources vs. Ivanhoe Energy | Altair Resources vs. Orezone Gold Corp | Altair Resources vs. Faraday Copper Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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