Correlation Between Fairfax Financial and TGS Esports
Can any of the company-specific risk be diversified away by investing in both Fairfax Financial and TGS Esports 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 TGS Esports 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 TGS Esports, you can compare the effects of market volatilities on Fairfax Financial and TGS Esports 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 TGS Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fairfax Financial and TGS Esports.
Diversification Opportunities for Fairfax Financial and TGS Esports
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fairfax and TGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Financial Holdings and TGS Esports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS Esports 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 TGS Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS Esports has no effect on the direction of Fairfax Financial i.e., Fairfax Financial and TGS Esports go up and down completely randomly.
Pair Corralation between Fairfax Financial and TGS Esports
If you would invest 2,212 in Fairfax Financial Holdings on December 2, 2024 and sell it today you would earn a total of 313.00 from holding Fairfax Financial Holdings or generate 14.15% 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. TGS Esports
Performance |
| Timeline |
| Fairfax Financial |
| TGS Esports |
Fairfax Financial and TGS Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fairfax Financial and TGS Esports
The main advantage of trading using opposite Fairfax Financial and TGS Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fairfax Financial position performs unexpectedly, TGS Esports 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 TGS Esports will offset losses from the drop in TGS Esports' long position.| Fairfax Financial vs. SalesforceCom CDR | Fairfax Financial vs. East Side Games | Fairfax Financial vs. Cogeco Communications | Fairfax Financial vs. Highwood Asset Management |
| TGS Esports vs. BluMetric Environmental | TGS Esports vs. Partners Value Investments | TGS Esports vs. Atrium Mortgage Investment | TGS Esports vs. Firan Technology Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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