Correlation Between Helios Fairfax and Dividend

Can any of the company-specific risk be diversified away by investing in both Helios Fairfax and Dividend 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 Helios Fairfax and Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Helios Fairfax Partners and Dividend 15 Split, you can compare the effects of market volatilities on Helios Fairfax and Dividend 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 Helios Fairfax with a short position of Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and Dividend.

Diversification Opportunities for Helios Fairfax and Dividend

-0.33

Correlation Coefficient

Helios Fairfax  Dividend

Very good diversification

The 3 months correlation between Helios and Dividend is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split and Helios Fairfax 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 Helios Fairfax Partners are associated (or correlated) with Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Helios Fairfax i.e., Helios Fairfax and Dividend go up and down completely randomly.

Pair Corralation between Helios Fairfax and Dividend

Assuming the 90 days trading horizon Helios Fairfax Partners is expected to under-perform the Dividend. In addition to that, Helios Fairfax is 3.4 times more volatile than Dividend 15 Split. It trades about -0.1 of its total potential returns per unit of risk. Dividend 15 Split is currently generating about 0.47 per unit of volatility. If you would invest  592.00  in Dividend 15 Split on July 10, 2025 and sell it today you would earn a total of  91.00  from holding Dividend 15 Split or generate 15.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Helios Fairfax Partners  vs.  Dividend 15 Split

Helios Fairfax Partners

Risk-Adjusted Performance

Weakest

Over the last 90 days Helios Fairfax Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Dividend 15 Split

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 36 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Dividend displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Helios Fairfax and Dividend

The main advantage of trading using opposite Helios Fairfax and Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax position performs unexpectedly, Dividend 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 Dividend will offset losses from the drop in Dividend's long position.

The idea behind Helios Fairfax Partners and Dividend 15 Split pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.