Correlation Between Luxfer Holdings and PFIZER
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By analyzing existing cross correlation between Luxfer Holdings PLC and PFIZER INC 4125, you can compare the effects of market volatilities on Luxfer Holdings 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 Luxfer Holdings with a short position of PFIZER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and PFIZER.
Diversification Opportunities for Luxfer Holdings and PFIZER
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luxfer and PFIZER is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC 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 Luxfer Holdings 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 Luxfer Holdings 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 4125 has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and PFIZER go up and down completely randomly.
Pair Corralation between Luxfer Holdings and PFIZER
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to under-perform the PFIZER. But the stock apears to be less risky and, when comparing its historical volatility, Luxfer Holdings PLC is 1.68 times less risky than PFIZER. The stock trades about -0.12 of its potential returns per unit of risk. The PFIZER INC 4125 is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 8,471 in PFIZER INC 4125 on September 12, 2024 and sell it today you would lose (132.00) from holding PFIZER INC 4125 or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. PFIZER INC 4125
Performance |
| Timeline |
| Luxfer Holdings PLC |
| PFIZER INC 4125 |
Luxfer Holdings and PFIZER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and PFIZER
The main advantage of trading using opposite Luxfer Holdings and PFIZER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings 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.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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