Fairfax Fin Correlations

FFH-PC Preferred Stock  CAD 18.79  0.13  0.70%   
The correlation of Fairfax Fin 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
  
The ability to find closely correlated positions to Fairfax Fin 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 Fin 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 Fin - 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 Fin Hld to buy it.

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
CVSGMX
PLZ-UNBN-PK
CVSPMZ-UN
PLZ-UNPMZ-UN
CVSPLZ-UN
PMZ-UNGMX
  
High negative correlations   
BN-PKEFN
PLZ-UNEFN
AZSEFN
WIBN-PK
PMZ-UNAZS
CVSEFN

Risk-Adjusted Indicators

There is a big difference between Fairfax Preferred Stock performing well and Fairfax Fin Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Fairfax Fin's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Fairfax Fin Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Fairfax Fin preferred stock to make a market-neutral strategy. Peer analysis of Fairfax Fin could also be used in its relative valuation, which is a method of valuing Fairfax Fin by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Fairfax Fin Corporate Management

Elected by the shareholders, the Fairfax Fin's board of directors comprises two types of representatives: Fairfax Fin inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Fairfax. The board's role is to monitor Fairfax Fin's management team and ensure that shareholders' interests are well served. Fairfax Fin's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Fairfax Fin's outside directors are responsible for providing unbiased perspectives on the board's policies.