Fairfax Financial Holdings (OTCPK:FRFHF, TSX:FFH) is a curious stock that moves differently from the U.S. and Canadian stock markets, as shown in the chart below. This potentially makes Fairfax a good candidate to trade while adding diversification to investors' stock portfolios.
The Business
Fairfax's business model is similar to Berkshire Hathaway's (BRK.A)(BRK.B). It has an underlying insurance business that generates float as a source of low-cost capital to invest for higher returns.
Fairfax's underlying insurance and reinsurance businesses and other subsidiaries operate on a decentralized basis,