Correlation Between Pfizer and UBS
Can any of the company-specific risk be diversified away by investing in both Pfizer and UBS 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 UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and UBS, you can compare the effects of market volatilities on Pfizer and UBS 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 UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and UBS.
Diversification Opportunities for Pfizer and UBS
Excellent diversification
The 3 months correlation between Pfizer and UBS is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 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 UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of Pfizer i.e., Pfizer and UBS go up and down completely randomly.
Pair Corralation between Pfizer and UBS
If you would invest 22,452 in UBS on September 13, 2024 and sell it today you would earn a total of 0.00 from holding UBS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Pfizer Inc vs. UBS
Performance |
| Timeline |
| Pfizer Inc |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pfizer and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and UBS
The main advantage of trading using opposite Pfizer and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS's long position.| Pfizer vs. AbbVie Inc | Pfizer vs. Merck Company | Pfizer vs. Eli Lilly and | Pfizer vs. Bristol Myers Squibb |
| UBS vs. Vanguard Total World | UBS vs. iShares MSCI ACWI | UBS vs. iShares Global 100 | UBS vs. iShares MSCI World |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |