Correlation Between Atlas Financial and Fairfax Financial
Can any of the company-specific risk be diversified away by investing in both Atlas Financial 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 Atlas Financial and Fairfax Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Financial Holdings and Fairfax Financial Holdings, you can compare the effects of market volatilities on Atlas Financial 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 Atlas Financial with a short position of Fairfax Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Financial and Fairfax Financial.
Diversification Opportunities for Atlas Financial and Fairfax Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlas and Fairfax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Financial Holdings and Fairfax Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairfax Financial and Atlas 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 Atlas Financial Holdings 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 Atlas Financial i.e., Atlas Financial and Fairfax Financial go up and down completely randomly.
Pair Corralation between Atlas Financial and Fairfax Financial
If you would invest 100,635 in Fairfax Financial Holdings on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Fairfax Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Atlas Financial Holdings vs. Fairfax Financial Holdings
Performance |
| Timeline |
| Atlas Financial Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fairfax Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlas Financial and Fairfax Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Financial and Fairfax Financial
The main advantage of trading using opposite Atlas Financial and Fairfax Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Financial 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.| Atlas Financial vs. United Rentals | Atlas Financial vs. Broadstone Net LeaseInc | Atlas Financial vs. Fortress Transp Infra | Atlas Financial vs. Cementos Pacasmayo SAA |
| Fairfax Financial vs. RLI Corp | Fairfax Financial vs. Chubb | Fairfax Financial vs. Progressive Corp | Fairfax Financial vs. White Mountains Insurance |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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