Correlation Between Pfizer and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Pfizer and Natixis ETF 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 Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Natixis ETF Trust, you can compare the effects of market volatilities on Pfizer and Natixis ETF 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 Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Natixis ETF.
Diversification Opportunities for Pfizer and Natixis ETF
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pfizer and Natixis is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust 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 Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Pfizer i.e., Pfizer and Natixis ETF go up and down completely randomly.
Pair Corralation between Pfizer and Natixis ETF
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Natixis ETF. In addition to that, Pfizer is 2.18 times more volatile than Natixis ETF Trust. It trades about -0.07 of its total potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.1 per unit of volatility. If you would invest 4,718 in Natixis ETF Trust on August 30, 2024 and sell it today you would earn a total of 813.00 from holding Natixis ETF Trust or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 48.89% |
| Values | Daily Returns |
Pfizer Inc vs. Natixis ETF Trust
Performance |
| Timeline |
| Pfizer Inc |
| Natixis ETF Trust |
Pfizer and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Natixis ETF
The main advantage of trading using opposite Pfizer and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF's long position.| Pfizer vs. Pharvaris BV | Pfizer vs. Brinker International | Pfizer vs. Alcoa Corp | Pfizer vs. Direxion Daily FTSE |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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