Correlation Between Pfizer and Akoustis Technologies
Can any of the company-specific risk be diversified away by investing in both Pfizer and Akoustis Technologies 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 Akoustis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Akoustis Technologies, you can compare the effects of market volatilities on Pfizer and Akoustis Technologies 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 Akoustis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Akoustis Technologies.
Diversification Opportunities for Pfizer and Akoustis Technologies
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pfizer and Akoustis is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Akoustis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoustis Technologies 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 Akoustis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoustis Technologies has no effect on the direction of Pfizer i.e., Pfizer and Akoustis Technologies go up and down completely randomly.
Pair Corralation between Pfizer and Akoustis Technologies
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Akoustis Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 6.42 times less risky than Akoustis Technologies. The stock trades about -0.16 of its potential returns per unit of risk. The Akoustis Technologies is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 5.59 in Akoustis Technologies on September 1, 2024 and sell it today you would earn a total of 4.41 from holding Akoustis Technologies or generate 78.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. Akoustis Technologies
Performance |
| Timeline |
| Pfizer Inc |
| Akoustis Technologies |
Pfizer and Akoustis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Akoustis Technologies
The main advantage of trading using opposite Pfizer and Akoustis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Akoustis Technologies 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 Akoustis Technologies will offset losses from the drop in Akoustis Technologies' long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
| Akoustis Technologies vs. Aviat Networks | Akoustis Technologies vs. AudioCodes | Akoustis Technologies vs. Silicom | Akoustis Technologies vs. Gilat Satellite Networks |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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