Correlation Analysis Between FAIRFAX FINANCIAL and AEX Amsterdam

This module allows you to analyze existing cross correlation between FAIRFAX FINANCIAL HOLDINGS LTD and AEX Amsterdam. You can compare the effects of market volatilities on FAIRFAX FINANCIAL and AEX Amsterdam 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 AEX Amsterdam. See also your portfolio center. Please also check ongoing floating volatility patterns of FAIRFAX FINANCIAL and AEX Amsterdam.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

FAIRFAX FINANCIAL HOLDINGS LTD  vs.  AEX Amsterdam

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, FAIRFAX FINANCIAL is expected to generate 17.44 times less return on investment than AEX Amsterdam. But when comparing it to its historical volatility, FAIRFAX FINANCIAL HOLDINGS LTD is 6.4 times less risky than AEX Amsterdam. It trades about 0.02 of its potential returns per unit of risk. AEX Amsterdam is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  79,234  in AEX Amsterdam on October 23, 2019 and sell it today you would earn a total of  8,184  from holding AEX Amsterdam or generate 10.33% return on investment over 30 days.

Pair Corralation between FAIRFAX FINANCIAL and AEX Amsterdam

-0.06
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for FAIRFAX FINANCIAL and AEX Amsterdam

FAIRFAX FINANCIAL HOLDINGS LTD diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding FAIRFAX FINANCIAL HOLDINGS LTD and AEX Amsterdam in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AEX Amsterdam 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 LTD are associated (or correlated) with AEX Amsterdam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEX Amsterdam has no effect on the direction of FAIRFAX FINANCIAL i.e. FAIRFAX FINANCIAL and AEX Amsterdam go up and down completely randomly.
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See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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