Correlation Between Fairfax Financial and Silver Elephant
Can any of the company-specific risk be diversified away by investing in both Fairfax Financial and Silver Elephant 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 Silver Elephant 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 Silver Elephant Mining, you can compare the effects of market volatilities on Fairfax Financial and Silver Elephant 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 Silver Elephant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fairfax Financial and Silver Elephant.
Diversification Opportunities for Fairfax Financial and Silver Elephant
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fairfax and Silver is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Financial Holdings and Silver Elephant Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Elephant Mining 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 Silver Elephant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Elephant Mining has no effect on the direction of Fairfax Financial i.e., Fairfax Financial and Silver Elephant go up and down completely randomly.
Pair Corralation between Fairfax Financial and Silver Elephant
Assuming the 90 days trading horizon Fairfax Financial Holdings is expected to generate 0.11 times more return on investment than Silver Elephant. However, Fairfax Financial Holdings is 9.14 times less risky than Silver Elephant. It trades about 0.18 of its potential returns per unit of risk. Silver Elephant Mining is currently generating about -0.19 per unit of risk. If you would invest 2,197 in Fairfax Financial Holdings on November 2, 2024 and sell it today you would earn a total of 226.00 from holding Fairfax Financial Holdings or generate 10.29% 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. Silver Elephant Mining
Performance |
| Timeline |
| Fairfax Financial |
| Silver Elephant Mining |
Fairfax Financial and Silver Elephant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fairfax Financial and Silver Elephant
The main advantage of trading using opposite Fairfax Financial and Silver Elephant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fairfax Financial position performs unexpectedly, Silver Elephant 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 Silver Elephant will offset losses from the drop in Silver Elephant's long position.| Fairfax Financial vs. Datable Technology Corp | Fairfax Financial vs. Maple Leaf Foods | Fairfax Financial vs. Nicola Mining | Fairfax Financial vs. XXIX Metal Corp |
| Silver Elephant vs. Silver One Resources | Silver Elephant vs. Aftermath Silver | Silver Elephant vs. AbraSilver Resource Corp | Silver Elephant vs. Reyna Silver 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |