Correlation Between Pfizer and High Liner
Can any of the company-specific risk be diversified away by investing in both Pfizer and High Liner 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 High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and High Liner Foods, you can compare the effects of market volatilities on Pfizer and High Liner 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 High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and High Liner.
Diversification Opportunities for Pfizer and High Liner
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pfizer and High is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and High Liner Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Liner Foods 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 High Liner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Liner Foods has no effect on the direction of Pfizer i.e., Pfizer and High Liner go up and down completely randomly.
Pair Corralation between Pfizer and High Liner
If you would invest (100.00) in High Liner Foods on August 24, 2024 and sell it today you would earn a total of 100.00 from holding High Liner Foods or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Pfizer Inc vs. High Liner Foods
Performance |
| Timeline |
| Pfizer Inc |
| High Liner Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Pfizer and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and High Liner
The main advantage of trading using opposite Pfizer and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, High Liner 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 High Liner will offset losses from the drop in High Liner's long position.| Pfizer vs. Merck Company | Pfizer vs. Johnson Johnson | Pfizer vs. Eshallgo Class A | Pfizer vs. Amtech Systems |
| High Liner vs. Lamb Weston Holdings | High Liner vs. Kellanova | High Liner vs. Premier Foods Plc | High Liner vs. Torque Lifestyle Brands |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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