Correlation Between Onex Corp and Helios Fairfax
Can any of the company-specific risk be diversified away by investing in both Onex Corp and Helios Fairfax 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 Onex Corp and Helios Fairfax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onex Corp and Helios Fairfax Partners, you can compare the effects of market volatilities on Onex Corp and Helios Fairfax 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 Onex Corp with a short position of Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onex Corp and Helios Fairfax.
Diversification Opportunities for Onex Corp and Helios Fairfax
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Onex and Helios is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Onex Corp and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners and Onex Corp 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 Onex Corp are associated (or correlated) with Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of Onex Corp i.e., Onex Corp and Helios Fairfax go up and down completely randomly.
Pair Corralation between Onex Corp and Helios Fairfax
Assuming the 90 days horizon Onex Corp is expected to generate 0.82 times more return on investment than Helios Fairfax. However, Onex Corp is 1.22 times less risky than Helios Fairfax. It trades about -0.05 of its potential returns per unit of risk. Helios Fairfax Partners is currently generating about -0.05 per unit of risk. If you would invest 8,473 in Onex Corp on September 12, 2024 and sell it today you would lose (136.00) from holding Onex Corp or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Onex Corp vs. Helios Fairfax Partners
Performance |
| Timeline |
| Onex Corp |
| Helios Fairfax Partners |
Onex Corp and Helios Fairfax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onex Corp and Helios Fairfax
The main advantage of trading using opposite Onex Corp and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onex Corp position performs unexpectedly, Helios Fairfax 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 Helios Fairfax will offset losses from the drop in Helios Fairfax's long position.| Onex Corp vs. Cohen Steers | Onex Corp vs. Artisan Partners Asset | Onex Corp vs. Principal Financial Group | Onex Corp vs. Invesco Plc |
| Helios Fairfax vs. Nuveen Global High | Helios Fairfax vs. New America High | Helios Fairfax vs. Brookfield Business Corp | Helios Fairfax vs. Elysee Development 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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