Correlation Between Ledesma SAAI and Pfizer
Can any of the company-specific risk be diversified away by investing in both Ledesma SAAI 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 Ledesma SAAI and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ledesma SAAI and Pfizer Inc, you can compare the effects of market volatilities on Ledesma SAAI 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 Ledesma SAAI with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ledesma SAAI and Pfizer.
Diversification Opportunities for Ledesma SAAI and Pfizer
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ledesma and Pfizer is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ledesma SAAI and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Ledesma SAAI 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 Ledesma SAAI 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 Ledesma SAAI i.e., Ledesma SAAI and Pfizer go up and down completely randomly.
Pair Corralation between Ledesma SAAI and Pfizer
Assuming the 90 days trading horizon Ledesma SAAI is expected to generate 1.07 times less return on investment than Pfizer. In addition to that, Ledesma SAAI is 1.89 times more volatile than Pfizer Inc. It trades about 0.02 of its total potential returns per unit of risk. Pfizer Inc is currently generating about 0.04 per unit of volatility. If you would invest 784,000 in Pfizer Inc on November 2, 2024 and sell it today you would earn a total of 6,000 from holding Pfizer Inc or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ledesma SAAI vs. Pfizer Inc
Performance |
| Timeline |
| Ledesma SAAI |
| Pfizer Inc |
Ledesma SAAI and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ledesma SAAI and Pfizer
The main advantage of trading using opposite Ledesma SAAI and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ledesma SAAI 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.| Ledesma SAAI vs. Harmony Gold Mining | Ledesma SAAI vs. Agrometal SAI | Ledesma SAAI vs. United States Steel | Ledesma SAAI vs. Compania de Transporte |
| Pfizer vs. Telecom Argentina | Pfizer vs. Harmony Gold Mining | Pfizer vs. Transportadora de Gas | Pfizer vs. Agrometal SAI |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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