Correlation Between Fairfax Financial and Upstart Investments
Can any of the company-specific risk be diversified away by investing in both Fairfax Financial and Upstart Investments 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 Upstart Investments 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 Upstart Investments, you can compare the effects of market volatilities on Fairfax Financial and Upstart Investments 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 Upstart Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fairfax Financial and Upstart Investments.
Diversification Opportunities for Fairfax Financial and Upstart Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fairfax and Upstart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Financial Holdings and Upstart Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Investments 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 Upstart Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Investments has no effect on the direction of Fairfax Financial i.e., Fairfax Financial and Upstart Investments go up and down completely randomly.
Pair Corralation between Fairfax Financial and Upstart Investments
If you would invest 6.00 in Upstart Investments on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Upstart Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fairfax Financial Holdings vs. Upstart Investments
Performance |
| Timeline |
| Fairfax Financial |
| Upstart Investments |
Fairfax Financial and Upstart Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fairfax Financial and Upstart Investments
The main advantage of trading using opposite Fairfax Financial and Upstart Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fairfax Financial position performs unexpectedly, Upstart Investments 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 Upstart Investments will offset losses from the drop in Upstart Investments' long position.| Fairfax Financial vs. Canaf Investments | Fairfax Financial vs. HPQ Silicon Resources | Fairfax Financial vs. Solid Impact Investments | Fairfax Financial vs. Westshore Terminals Investment |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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