Correlation Between TGS Esports and Fairfax Financial
Can any of the company-specific risk be diversified away by investing in both TGS Esports 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 TGS Esports and Fairfax Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGS Esports and Fairfax Financial Holdings, you can compare the effects of market volatilities on TGS Esports 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 TGS Esports with a short position of Fairfax Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGS Esports and Fairfax Financial.
Diversification Opportunities for TGS Esports and Fairfax Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TGS and Fairfax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TGS Esports and Fairfax Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairfax Financial and TGS Esports 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 TGS Esports 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 TGS Esports i.e., TGS Esports and Fairfax Financial go up and down completely randomly.
Pair Corralation between TGS Esports and Fairfax Financial
If you would invest 2,410 in Fairfax Financial Holdings on September 13, 2024 and sell it today you would earn a total of 93.00 from holding Fairfax Financial Holdings or generate 3.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TGS Esports vs. Fairfax Financial Holdings
Performance |
Timeline |
TGS Esports |
Fairfax Financial |
TGS Esports and Fairfax Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TGS Esports and Fairfax Financial
The main advantage of trading using opposite TGS Esports and Fairfax Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGS Esports 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.TGS Esports vs. Royal Helium | TGS Esports vs. Excelsior Mining Corp | TGS Esports vs. Vista Gold | TGS Esports vs. Intermap Technologies Corp |
Fairfax Financial vs. Hemisphere Energy | Fairfax Financial vs. Aya Gold Silver | Fairfax Financial vs. Summa Silver Corp | Fairfax Financial vs. Canlan Ice Sports |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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