Correlation Between NYSE Composite and PFIZER
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By analyzing existing cross correlation between NYSE Composite and PFIZER INC 43, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of PFIZER. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and PFIZER.
Diversification Opportunities for NYSE Composite and PFIZER
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and PFIZER is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and PFIZER INC 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFIZER INC 43 and NYSE Composite 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 NYSE Composite 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 43 has no effect on the direction of NYSE Composite i.e., NYSE Composite and PFIZER go up and down completely randomly.
Pair Corralation between NYSE Composite and PFIZER
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.65 times more return on investment than PFIZER. However, NYSE Composite is 1.54 times less risky than PFIZER. It trades about 0.18 of its potential returns per unit of risk. PFIZER INC 43 is currently generating about -0.11 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 52,921 from holding NYSE Composite or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
NYSE Composite vs. PFIZER INC 43
Performance |
| Timeline |
NYSE Composite and PFIZER Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
PFIZER INC 43
Pair trading matchups for PFIZER
Pair Trading with NYSE Composite and PFIZER
The main advantage of trading using opposite NYSE Composite and PFIZER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| PFIZER vs. Thai Beverage PCL | PFIZER vs. Boston Beer | PFIZER vs. Hf Foods Group | PFIZER vs. Marfrig Global Foods |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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