Correlation Between Pfizer and Acasti Pharma
Can any of the company-specific risk be diversified away by investing in both Pfizer and Acasti Pharma 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 Acasti Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Acasti Pharma, you can compare the effects of market volatilities on Pfizer and Acasti Pharma 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 Acasti Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Acasti Pharma.
Diversification Opportunities for Pfizer and Acasti Pharma
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pfizer and Acasti is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Acasti Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acasti Pharma 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 are associated (or correlated) with Acasti Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acasti Pharma has no effect on the direction of Pfizer i.e., Pfizer and Acasti Pharma go up and down completely randomly.
Pair Corralation between Pfizer and Acasti Pharma
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Acasti Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 2.71 times less risky than Acasti Pharma. The stock trades about -0.03 of its potential returns per unit of risk. The Acasti Pharma is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 259.00 in Acasti Pharma on August 29, 2024 and sell it today you would earn a total of 78.00 from holding Acasti Pharma or generate 30.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 92.44% |
| Values | Daily Returns |
Pfizer Inc vs. Acasti Pharma
Performance |
| Timeline |
| Pfizer Inc |
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Pfizer and Acasti Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Acasti Pharma
The main advantage of trading using opposite Pfizer and Acasti Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Acasti Pharma 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 Acasti Pharma will offset losses from the drop in Acasti Pharma's long position.| Pfizer vs. Pharvaris BV | Pfizer vs. Brinker International | Pfizer vs. Alcoa Corp | Pfizer vs. Direxion Daily FTSE |
| Acasti Pharma vs. Tonix Pharmaceuticals Holding | Acasti Pharma vs. Jaguar Animal Health | Acasti Pharma vs. Ibio Inc | Acasti Pharma vs. Akari Therapeutics PLC |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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