Correlation Between Solid Impact and Fairfax Financial
Can any of the company-specific risk be diversified away by investing in both Solid Impact 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 Solid Impact and Fairfax Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Impact Investments and Fairfax Financial Holdings, you can compare the effects of market volatilities on Solid Impact 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 Solid Impact with a short position of Fairfax Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Impact and Fairfax Financial.
Diversification Opportunities for Solid Impact and Fairfax Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solid and Fairfax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solid Impact Investments and Fairfax Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairfax Financial and Solid Impact 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 Solid Impact Investments 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 Solid Impact i.e., Solid Impact and Fairfax Financial go up and down completely randomly.
Pair Corralation between Solid Impact and Fairfax Financial
If you would invest 2,500 in Fairfax Financial Holdings on November 27, 2024 and sell it today you would earn a total of 14.00 from holding Fairfax Financial Holdings or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Impact Investments vs. Fairfax Financial Holdings
Performance |
| Timeline |
| Solid Impact Investments |
| Fairfax Financial |
Solid Impact and Fairfax Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Impact and Fairfax Financial
The main advantage of trading using opposite Solid Impact and Fairfax Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Impact 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.| Solid Impact vs. Renoworks Software | Solid Impact vs. Mayfair Acquisition | Solid Impact vs. CNJ Capital Investments | Solid Impact vs. Canadian General Investments |
| Fairfax Financial vs. Sun Peak Metals | Fairfax Financial vs. Adex Mining | Fairfax Financial vs. Postmedia Network Canada | Fairfax Financial vs. VIP Entertainment Technologies |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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