Fairfax Financial Correlations

FFH-PD Stock  CAD 22.10  0.22  0.99%   
The current 90-days correlation between Fairfax Financial and Fairfax Financial Holdings is 0.36 (i.e., Weak diversification). 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Fairfax Financial Correlation With Market

Good diversification

The correlation between Fairfax Financial Holdings and NYA is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Financial Holdings and NYA in the same portfolio, assuming nothing else is changed.
  
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.

Moving together with Fairfax Stock

  0.78WINS Winshear Gold CorpPairCorr
  0.71FFN North American FinancialPairCorr
  0.76TINY TinyPairCorr

Moving against Fairfax Stock

  0.6WCM-A Wilmington CapitalPairCorr
  0.5HOT-UN American Hotel IncomePairCorr
  0.43CNE Canacol EnergyPairCorr

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   
BN-PFIFFH-PK
BN-PFIALA-PA
BN-PFIRUDB
ALA-PAFFH-PK
RUDBALA-PA
RUDBXHB
  
High negative correlations   
ERE-UNFFH-PK
BN-PFIERE-UN
ERE-UNXHB
RUDBERE-UN
ERE-UNALA-PA
XEGXHB

Risk-Adjusted Indicators

There is a big difference between Fairfax Stock performing well and Fairfax Financial 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 Financial'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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Fairfax Financial without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Fairfax Financial Corporate Management

Elected by the shareholders, the Fairfax Financial's board of directors comprises two types of representatives: Fairfax Financial 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 Financial's management team and ensure that shareholders' interests are well served. Fairfax Financial'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 Financial's outside directors are responsible for providing unbiased perspectives on the board's policies.