Correlation Between Haleon Plc and Pfizer
Can any of the company-specific risk be diversified away by investing in both Haleon Plc 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 Haleon Plc and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and Pfizer Inc, you can compare the effects of market volatilities on Haleon Plc 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 Haleon Plc with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and Pfizer.
Diversification Opportunities for Haleon Plc and Pfizer
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haleon and Pfizer is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Haleon Plc 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 Haleon plc 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 Haleon Plc i.e., Haleon Plc and Pfizer go up and down completely randomly.
Pair Corralation between Haleon Plc and Pfizer
Considering the 90-day investment horizon Haleon plc is expected to generate 0.89 times more return on investment than Pfizer. However, Haleon plc is 1.13 times less risky than Pfizer. It trades about 0.05 of its potential returns per unit of risk. Pfizer Inc is currently generating about -0.04 per unit of risk. If you would invest 770.00 in Haleon plc on December 6, 2024 and sell it today you would earn a total of 269.00 from holding Haleon plc or generate 34.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haleon plc vs. Pfizer Inc
Performance |
| Timeline |
| Haleon plc |
| Pfizer Inc |
Haleon Plc and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haleon Plc and Pfizer
The main advantage of trading using opposite Haleon Plc and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc 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.| Haleon Plc vs. Teva Pharma Industries | Haleon Plc vs. Bausch Health Companies | Haleon Plc vs. Zoetis Inc | Haleon Plc vs. Takeda Pharmaceutical Co |
| Pfizer vs. AbbVie Inc | Pfizer vs. Merck Company | Pfizer vs. Eli Lilly and | Pfizer vs. Bristol Myers Squibb |
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 CEOs Directory module to screen CEOs from public companies around the world.
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