Correlation Between Fairfax Financial and Gunpoint Exploration
Can any of the company-specific risk be diversified away by investing in both Fairfax Financial and Gunpoint Exploration 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 Gunpoint Exploration 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 Gunpoint Exploration, you can compare the effects of market volatilities on Fairfax Financial and Gunpoint Exploration 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 Gunpoint Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fairfax Financial and Gunpoint Exploration.
Diversification Opportunities for Fairfax Financial and Gunpoint Exploration
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fairfax and Gunpoint is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Financial Holdings and Gunpoint Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunpoint Exploration 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 Gunpoint Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunpoint Exploration has no effect on the direction of Fairfax Financial i.e., Fairfax Financial and Gunpoint Exploration go up and down completely randomly.
Pair Corralation between Fairfax Financial and Gunpoint Exploration
Assuming the 90 days trading horizon Fairfax Financial is expected to generate 1.22 times less return on investment than Gunpoint Exploration. But when comparing it to its historical volatility, Fairfax Financial Holdings is 3.18 times less risky than Gunpoint Exploration. It trades about 0.12 of its potential returns per unit of risk. Gunpoint Exploration is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Gunpoint Exploration on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Gunpoint Exploration or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fairfax Financial Holdings vs. Gunpoint Exploration
Performance |
| Timeline |
| Fairfax Financial |
| Gunpoint Exploration |
Fairfax Financial and Gunpoint Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fairfax Financial and Gunpoint Exploration
The main advantage of trading using opposite Fairfax Financial and Gunpoint Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fairfax Financial position performs unexpectedly, Gunpoint Exploration 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 Gunpoint Exploration will offset losses from the drop in Gunpoint Exploration's long position.| Fairfax Financial vs. Computer Modelling Group | Fairfax Financial vs. Information Services | Fairfax Financial vs. Wilmington Capital Management | Fairfax Financial vs. UnitedHealth Group CDR |
| Gunpoint Exploration vs. Ramp Metals | Gunpoint Exploration vs. Plaza Retail REIT | Gunpoint Exploration vs. Mako Mining Corp | Gunpoint Exploration vs. Bird Construction |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |