Fairfax Financial Holdings Stock Market Value
| FFH Stock | CAD 1,971 15.75 0.81% |
| Symbol | Fairfax |
Fairfax Financial Price To Book Ratio
Fairfax Financial 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Fairfax Financial's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Fairfax Financial.
| 10/27/2024 |
| 11/26/2024 |
If you would invest 0.00 in Fairfax Financial on October 27, 2024 and sell it all today you would earn a total of 0.00 from holding Fairfax Financial Holdings or generate 0.0% return on investment in Fairfax Financial over 30 days. Fairfax Financial is related to or competes with Intact Financial, IA Financial, TMX Group, Onex Corp, and CI Financial. Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, ... More
Fairfax Financial Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Fairfax Financial's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Fairfax Financial Holdings upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.47 | |||
| Information Ratio | 0.1222 | |||
| Maximum Drawdown | 12.98 | |||
| Value At Risk | (2.26) | |||
| Potential Upside | 2.04 |
Fairfax Financial Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Fairfax Financial's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Fairfax Financial's standard deviation. In reality, there are many statistical measures that can use Fairfax Financial historical prices to predict the future Fairfax Financial's volatility.| Risk Adjusted Performance | 0.1585 | |||
| Jensen Alpha | 0.2954 | |||
| Total Risk Alpha | 0.0643 | |||
| Sortino Ratio | 0.1369 | |||
| Treynor Ratio | 1.57 |
Fairfax Financial Backtested Returns
Fairfax Financial appears to be very steady, given 3 months investment horizon. Fairfax Financial secures Sharpe Ratio (or Efficiency) of 0.2, which denotes the company had a 0.2% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Fairfax Financial Holdings, which you can use to evaluate the volatility of the firm. Please utilize Fairfax Financial's Coefficient Of Variation of 498.99, mean deviation of 1.0, and Downside Deviation of 1.47 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Fairfax Financial holds a performance score of 15. The firm shows a Beta (market volatility) of 0.2, which means not very significant fluctuations relative to the market. As returns on the market increase, Fairfax Financial's returns are expected to increase less than the market. However, during the bear market, the loss of holding Fairfax Financial is expected to be smaller as well. Please check Fairfax Financial's standard deviation, value at risk, kurtosis, as well as the relationship between the sortino ratio and semi variance , to make a quick decision on whether Fairfax Financial's price patterns will revert.
Auto-correlation | 0.56 |
Modest predictability
Fairfax Financial Holdings has modest predictability. Overlapping area represents the amount of predictability between Fairfax Financial time series from 27th of October 2024 to 11th of November 2024 and 11th of November 2024 to 26th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Fairfax Financial price movement. The serial correlation of 0.56 indicates that roughly 56.0% of current Fairfax Financial price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.56 | |
| Spearman Rank Test | 0.64 | |
| Residual Average | 0.0 | |
| Price Variance | 1070.12 |
Fairfax Financial lagged returns against current returns
Autocorrelation, which is Fairfax Financial stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Fairfax Financial's stock expected returns. We can calculate the autocorrelation of Fairfax Financial returns to help us make a trade decision. For example, suppose you find that Fairfax Financial has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Fairfax Financial regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Fairfax Financial stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Fairfax Financial stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Fairfax Financial stock over time.
Current vs Lagged Prices |
| Timeline |
Fairfax Financial Lagged Returns
When evaluating Fairfax Financial's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Fairfax Financial stock have on its future price. Fairfax Financial autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Fairfax Financial autocorrelation shows the relationship between Fairfax Financial stock current value and its past values and can show if there is a momentum factor associated with investing in Fairfax Financial Holdings.
Regressed Prices |
| Timeline |
Pair Trading with Fairfax Financial
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fairfax Financial position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with Fairfax Stock
| 0.73 | ELF | E L Financial | PairCorr |
| 0.88 | FFH-PC | Fairfax Fin Hld | PairCorr |
| 0.66 | FFH-PK | Fairfax Financial | PairCorr |
The ability to find closely correlated positions to Fairfax Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fairfax Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fairfax Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fairfax Financial Holdings to buy it.
The correlation of Fairfax Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fairfax Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fairfax Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fairfax Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Fairfax Stock
Fairfax Financial financial ratios help investors to determine whether Fairfax Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Fairfax with respect to the benefits of owning Fairfax Financial security.