Correlation Between Edesa Holding and Pfizer
Can any of the company-specific risk be diversified away by investing in both Edesa Holding and Pfizer 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 Edesa Holding and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edesa Holding SA and Pfizer Inc, you can compare the effects of market volatilities on Edesa Holding and Pfizer 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 Edesa Holding with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edesa Holding and Pfizer.
Diversification Opportunities for Edesa Holding and Pfizer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edesa and Pfizer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edesa Holding SA and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Edesa Holding 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 Edesa Holding SA are associated (or correlated) with Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Edesa Holding i.e., Edesa Holding and Pfizer go up and down completely randomly.
Pair Corralation between Edesa Holding and Pfizer
Assuming the 90 days trading horizon Edesa Holding SA is expected to generate 0.57 times more return on investment than Pfizer. However, Edesa Holding SA is 1.77 times less risky than Pfizer. It trades about 0.12 of its potential returns per unit of risk. Pfizer Inc is currently generating about 0.01 per unit of risk. If you would invest 17,300 in Edesa Holding SA on August 30, 2024 and sell it today you would earn a total of 31,700 from holding Edesa Holding SA or generate 183.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Edesa Holding SA vs. Pfizer Inc
Performance |
| Timeline |
| Edesa Holding SA |
| Pfizer Inc |
Edesa Holding and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edesa Holding and Pfizer
The main advantage of trading using opposite Edesa Holding and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edesa Holding position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.| Edesa Holding vs. Central Puerto SA | Edesa Holding vs. Empresa Distribuidora y | Edesa Holding vs. Enel Generacion Costanera | Edesa Holding vs. Longvie SA |
| Pfizer vs. United States Steel | Pfizer vs. Harmony Gold Mining | Pfizer vs. Agrometal SAI | Pfizer vs. Compania de Transporte |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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