Correlation Between Pfizer and Natixis Investment
Can any of the company-specific risk be diversified away by investing in both Pfizer and Natixis Investment 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 Investment 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 Investment Managers, you can compare the effects of market volatilities on Pfizer and Natixis Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Natixis Investment.
Diversification Opportunities for Pfizer and Natixis Investment
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pfizer and Natixis is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Natixis Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Investment 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Investment has no effect on the direction of Pfizer i.e., Pfizer and Natixis Investment go up and down completely randomly.
Pair Corralation between Pfizer and Natixis Investment
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Natixis Investment. In addition to that, Pfizer is 10.43 times more volatile than Natixis Investment Managers. It trades about -0.04 of its total potential returns per unit of risk. Natixis Investment Managers is currently generating about 0.3 per unit of volatility. If you would invest 2,347 in Natixis Investment Managers on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Natixis Investment Managers or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 64.29% |
| Values | Daily Returns |
Pfizer Inc vs. Natixis Investment Managers
Performance |
| Timeline |
| Pfizer Inc |
| Natixis Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Pfizer and Natixis Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Natixis Investment
The main advantage of trading using opposite Pfizer and Natixis Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Natixis Investment 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 Investment will offset losses from the drop in Natixis Investment's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
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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