Correlation Between Pfizer and Capricor Therapeutics
Can any of the company-specific risk be diversified away by investing in both Pfizer and Capricor Therapeutics 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 Capricor Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Capricor Therapeutics, you can compare the effects of market volatilities on Pfizer and Capricor Therapeutics 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 Capricor Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Capricor Therapeutics.
Diversification Opportunities for Pfizer and Capricor Therapeutics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pfizer and Capricor is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Capricor Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capricor Therapeutics 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 Capricor Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capricor Therapeutics has no effect on the direction of Pfizer i.e., Pfizer and Capricor Therapeutics go up and down completely randomly.
Pair Corralation between Pfizer and Capricor Therapeutics
Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.4 times more return on investment than Capricor Therapeutics. However, Pfizer Inc is 2.51 times less risky than Capricor Therapeutics. It trades about -0.21 of its potential returns per unit of risk. Capricor Therapeutics is currently generating about -0.14 per unit of risk. If you would invest 2,802 in Pfizer Inc on August 30, 2024 and sell it today you would lose (219.00) from holding Pfizer Inc or give up 7.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. Capricor Therapeutics
Performance |
| Timeline |
| Pfizer Inc |
| Capricor Therapeutics |
Pfizer and Capricor Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Capricor Therapeutics
The main advantage of trading using opposite Pfizer and Capricor Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Capricor Therapeutics 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 Capricor Therapeutics will offset losses from the drop in Capricor Therapeutics' long position.| Pfizer vs. Emergent Biosolutions | Pfizer vs. Bausch Health Companies | Pfizer vs. Neurocrine Biosciences | Pfizer vs. Teva Pharma Industries |
| Capricor Therapeutics vs. Ikena Oncology | Capricor Therapeutics vs. Eliem Therapeutics | Capricor Therapeutics vs. HCW Biologics | Capricor Therapeutics vs. RenovoRx |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |