Correlation Between Pfizer and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both Pfizer and WisdomTree Japan 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 WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and WisdomTree Japan Hedged, you can compare the effects of market volatilities on Pfizer and WisdomTree Japan 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 WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and WisdomTree Japan.
Diversification Opportunities for Pfizer and WisdomTree Japan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pfizer and WisdomTree is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged 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 WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of Pfizer i.e., Pfizer and WisdomTree Japan go up and down completely randomly.
Pair Corralation between Pfizer and WisdomTree Japan
If you would invest 2,504 in Pfizer Inc on October 19, 2025 and sell it today you would earn a total of 85.00 from holding Pfizer Inc or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Pfizer Inc vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| Pfizer Inc |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Pfizer and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and WisdomTree Japan
The main advantage of trading using opposite Pfizer and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, WisdomTree Japan 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 WisdomTree Japan will offset losses from the drop in WisdomTree Japan's long position.| Pfizer vs. Quoin Pharmaceuticals Ltd | Pfizer vs. Impact BioMedical | Pfizer vs. Pasithea Therapeutics Corp | Pfizer vs. Radiopharm Theranostics Limited |
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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