Correlation Between Reliq Health and Fairfax Financial
Can any of the company-specific risk be diversified away by investing in both Reliq Health and Fairfax Financial 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 Reliq Health and Fairfax Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reliq Health Technologies and Fairfax Financial Holdings, you can compare the effects of market volatilities on Reliq Health and Fairfax Financial 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 Reliq Health with a short position of Fairfax Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reliq Health and Fairfax Financial.
Diversification Opportunities for Reliq Health and Fairfax Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Reliq and Fairfax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Reliq Health Technologies and Fairfax Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairfax Financial and Reliq Health 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 Reliq Health Technologies are associated (or correlated) with Fairfax Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fairfax Financial has no effect on the direction of Reliq Health i.e., Reliq Health and Fairfax Financial go up and down completely randomly.
Pair Corralation between Reliq Health and Fairfax Financial
Assuming the 90 days horizon Reliq Health Technologies is expected to under-perform the Fairfax Financial. In addition to that, Reliq Health is 3.05 times more volatile than Fairfax Financial Holdings. It trades about -0.05 of its total potential returns per unit of risk. Fairfax Financial Holdings is currently generating about 0.14 per unit of volatility. If you would invest 1,742 in Fairfax Financial Holdings on August 26, 2024 and sell it today you would earn a total of 643.00 from holding Fairfax Financial Holdings or generate 36.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reliq Health Technologies vs. Fairfax Financial Holdings
Performance |
| Timeline |
| Reliq Health Technologies |
| Fairfax Financial |
Reliq Health and Fairfax Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reliq Health and Fairfax Financial
The main advantage of trading using opposite Reliq Health and Fairfax Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reliq Health position performs unexpectedly, Fairfax Financial 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 Fairfax Financial will offset losses from the drop in Fairfax Financial's long position.| Reliq Health vs. ESE Entertainment | Reliq Health vs. VentriPoint Diagnostics | Reliq Health vs. Datametrex AI |
| Fairfax Financial vs. Fairfax Financial Holdings | Fairfax Financial vs. Fairfax Financial Holdings | Fairfax Financial vs. Fairfax Financial Holdings | Fairfax Financial vs. Fairfax Financial Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |