Correlation Between Pfizer and Cohu
Can any of the company-specific risk be diversified away by investing in both Pfizer and Cohu 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 Cohu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Cohu Inc, you can compare the effects of market volatilities on Pfizer and Cohu 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 Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Cohu.
Diversification Opportunities for Pfizer and Cohu
Very good diversification
The 3 months correlation between Pfizer and Cohu is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc 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 Cohu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohu Inc has no effect on the direction of Pfizer i.e., Pfizer and Cohu go up and down completely randomly.
Pair Corralation between Pfizer and Cohu
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Cohu. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 1.99 times less risky than Cohu. The stock trades about -0.22 of its potential returns per unit of risk. The Cohu Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,595 in Cohu Inc on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Cohu Inc or generate 0.12% 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 vs. Cohu Inc
Performance |
| Timeline |
| Pfizer Inc |
| Cohu Inc |
Pfizer and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Cohu
The main advantage of trading using opposite Pfizer and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Cohu 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 Cohu will offset losses from the drop in Cohu's long position.| Pfizer vs. Johnson Johnson | Pfizer vs. RLJ Lodging Trust | Pfizer vs. Aquagold International | Pfizer vs. Stepstone Group |
| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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