Correlation Between Pfizer and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Pfizer and Bitfarms 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 Pfizer and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc CDR and Bitfarms, you can compare the effects of market volatilities on Pfizer and Bitfarms 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 Pfizer with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Bitfarms.
Diversification Opportunities for Pfizer and Bitfarms
Very good diversification
The 3 months correlation between Pfizer and Bitfarms is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc CDR and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Pfizer 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 Pfizer Inc CDR are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Pfizer i.e., Pfizer and Bitfarms go up and down completely randomly.
Pair Corralation between Pfizer and Bitfarms
Assuming the 90 days trading horizon Pfizer Inc CDR is expected to under-perform the Bitfarms. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc CDR is 4.34 times less risky than Bitfarms. The stock trades about -0.08 of its potential returns per unit of risk. The Bitfarms is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 74.00 in Bitfarms on August 28, 2024 and sell it today you would earn a total of 213.00 from holding Bitfarms or generate 287.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc CDR vs. Bitfarms
Performance |
| Timeline |
| Pfizer Inc CDR |
| Bitfarms |
Pfizer and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Bitfarms
The main advantage of trading using opposite Pfizer and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| Pfizer vs. North American Construction | Pfizer vs. iSign Media Solutions | Pfizer vs. Datable Technology Corp | Pfizer vs. Goodfood Market Corp |
| Bitfarms vs. Hut 8 Mining | Bitfarms vs. Bitfarms | Bitfarms vs. Dmg Blockchain Solutions | Bitfarms vs. Galaxy Digital Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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