Correlation Between Pfizer and Aim International
Can any of the company-specific risk be diversified away by investing in both Pfizer and Aim International 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 Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Aim International Mutual, you can compare the effects of market volatilities on Pfizer and Aim International 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 Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Aim International.
Diversification Opportunities for Pfizer and Aim International
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pfizer and Aim is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Aim International Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim International Mutual 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 Aim International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim International Mutual has no effect on the direction of Pfizer i.e., Pfizer and Aim International go up and down completely randomly.
Pair Corralation between Pfizer and Aim International
If you would invest 2,246 in Aim International Mutual on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Aim International Mutual or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Pfizer Inc vs. Aim International Mutual
Performance |
| Timeline |
| Pfizer Inc |
| Aim International Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pfizer and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Aim International
The main advantage of trading using opposite Pfizer and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Aim International 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 Aim International will offset losses from the drop in Aim International's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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