Fairfax Financial Holdings Stock Probability of Future Stock Price Finishing Under 18.73
| FFH-PD Stock | CAD 21.85 0.20 0.91% |
Fairfax |
Fairfax Financial Target Price Odds to finish below 18.73
The tendency of Fairfax Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to drop to C$ 18.73 or more in 90 days |
| 21.85 | 90 days | 18.73 | near 1 |
Based on a normal probability distribution, the odds of Fairfax Financial to drop to C$ 18.73 or more in 90 days from now is near 1 (This Fairfax Financial Holdings probability density function shows the probability of Fairfax Stock to fall within a particular range of prices over 90 days) . Probability of Fairfax Financial price to stay between C$ 18.73 and its current price of C$21.85 at the end of the 90-day period is about 79.06 .
Assuming the 90 days trading horizon Fairfax Financial has a beta of 0.21. This usually indicates as returns on the market go up, Fairfax Financial average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Fairfax Financial Holdings will be expected to be much smaller as well. Additionally Fairfax Financial Holdings has an alpha of 0.0016, implying that it can generate a 0.001649 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Fairfax Financial Price Density |
| Price |
Predictive Modules for Fairfax Financial
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Fairfax Financial. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Fairfax Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Fairfax Financial Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Fairfax Financial is not an exception. The market had few large corrections towards the Fairfax Financial's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Fairfax Financial Holdings, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Fairfax Financial within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | 0 | |
β | Beta against Dow Jones | 0.21 | |
σ | Overall volatility | 0.42 | |
Ir | Information ratio | -0.11 |
Fairfax Financial Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Fairfax Financial for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Fairfax Financial can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Fairfax Financial Holdings has accumulated about 7.23 B in cash with (39.4 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 260.79, which can makes it an attractive takeover target, given it will continue generating positive cash flow. |
Fairfax Financial Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Fairfax Stock often depends not only on the future outlook of the current and potential Fairfax Financial's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Fairfax Financial's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 23.8 M |
Fairfax Financial Technical Analysis
Fairfax Financial's future price can be derived by breaking down and analyzing its technical indicators over time. Fairfax Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Fairfax Financial Holdings. In general, you should focus on analyzing Fairfax Stock price patterns and their correlations with different microeconomic environments and drivers.
Fairfax Financial Predictive Forecast Models
Fairfax Financial's time-series forecasting models is one of many Fairfax Financial's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Fairfax Financial's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about Fairfax Financial
Checking the ongoing alerts about Fairfax Financial for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Fairfax Financial help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Fairfax Financial Holdings has accumulated about 7.23 B in cash with (39.4 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 260.79, which can makes it an attractive takeover target, given it will continue generating positive cash flow. |
Other Information on Investing in Fairfax Stock
Fairfax Financial financial ratios help investors to determine whether Fairfax Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Fairfax with respect to the benefits of owning Fairfax Financial security.