On a scale of 0 to 100, Fairfax Financial holds a
performance score of 16. The firm shows a Beta (market volatility) of 0.6325, which means possible diversification benefits within a given portfolio. Let's try to break down what Fairfax's beta means in this case. As returns on the market increase, Fairfax Financial returns are expected to increase less than the market. However, during the bear market, the loss on holding Fairfax Financial will be expected to be smaller as well. Although it is vital to follow
Fairfax Financial historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By reviewing
Fairfax Financial technical indicators, you can presently evaluate if the expected return of 0.28% will be sustainable into the future. Please utilizes Fairfax Financial
information ratio,
value at risk,
kurtosis, as well as the
relationship between the
sortino ratio and
semi variance to make a quick decision on whether Fairfax Financial
price patterns will revert.
What is the right price you would pay to acquire a share of Fairfax Financial? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Fairfax Financial Holdings this year
Annual and quarterly reports issued by Fairfax Financial Holdings are formal
financial statements that are published yearly and quarterly and sent to Fairfax stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Fairfax Financial often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
What is the case for Fairfax Financial Investors
Average experts consensus on Fairfax Financial has changed. Currently, most analysts have less confidence in the entity as compared to a month ago. The current buy or sell recommendation of 3 analysts is Hold.
Is Fairfax a risky opportunity?
Let's check the volatility. Fairfax is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Fairfax (USA Stocks:FRFHF) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. locking in a share of a Fairfax Financial stock makes you a part-owner of that company.
Fairfax Financial Holdings Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Fairfax Financial. The Fairfax consensus assessment is calculated by taking the average estimates from all of the analysts covering Fairfax Financial
| Strong Buy | 1 | 33.33 |
| Buy | 0 | 0.0 |
| Hold | 0 | 0.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 2 | 66.67 |
Fairfax Financial has a small chance to finish above USD662 in 2 months
Current value at risk is at -1.83. Fairfax Financial Holdings has relatively low volatility with skewness of -0.27 and kurtosis of 0.36. However, we advise all investors to independently investigate Fairfax Financial Holdings to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fairfax Financial's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fairfax Financial's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
While some firms in the insurance—property & casualty industry are either recovering or due for a correction, Fairfax may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Fairfax Financial at this time. The Fairfax Financial Holdings risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fairfax Financial.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Fairfax Financial Holdings. Please refer to our
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