Correlation Between Eastern and PFIZER
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By analyzing existing cross correlation between Eastern Co and PFIZER INC 4125, you can compare the effects of market volatilities on Eastern 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 Eastern with a short position of PFIZER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern and PFIZER.
Diversification Opportunities for Eastern and PFIZER
Good diversification
The 3 months correlation between Eastern and PFIZER is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Co and PFIZER INC 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFIZER INC 4125 and Eastern 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 Eastern Co 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 4125 has no effect on the direction of Eastern i.e., Eastern and PFIZER go up and down completely randomly.
Pair Corralation between Eastern and PFIZER
Considering the 90-day investment horizon Eastern Co is expected to generate 2.43 times more return on investment than PFIZER. However, Eastern is 2.43 times more volatile than PFIZER INC 4125. It trades about 0.07 of its potential returns per unit of risk. PFIZER INC 4125 is currently generating about 0.05 per unit of risk. If you would invest 1,736 in Eastern Co on September 4, 2024 and sell it today you would earn a total of 1,237 from holding Eastern Co or generate 71.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.14% |
| Values | Daily Returns |
Eastern Co vs. PFIZER INC 4125
Performance |
| Timeline |
| Eastern |
| PFIZER INC 4125 |
Eastern and PFIZER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern and PFIZER
The main advantage of trading using opposite Eastern and PFIZER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern 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.| Eastern vs. AB SKF | Eastern vs. Aquagold International | Eastern vs. Thrivent High Yield | Eastern vs. Morningstar Unconstrained Allocation |
| PFIZER vs. SunLink Health Systems | PFIZER vs. Hurco Companies | PFIZER vs. Sabre Corpo | PFIZER vs. CECO Environmental Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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