Correlation Between Pfizer and ProShares
Can any of the company-specific risk be diversified away by investing in both Pfizer and ProShares 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 ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and ProShares SP Kensho, you can compare the effects of market volatilities on Pfizer and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and ProShares.
Diversification Opportunities for Pfizer and ProShares
Pay attention - limited upside
The 3 months correlation between Pfizer and ProShares is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and ProShares SP Kensho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP Kensho 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP Kensho has no effect on the direction of Pfizer i.e., Pfizer and ProShares go up and down completely randomly.
Pair Corralation between Pfizer and ProShares
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the ProShares. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 1.15 times less risky than ProShares. The stock trades about -0.04 of its potential returns per unit of risk. The ProShares SP Kensho is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,714 in ProShares SP Kensho on September 1, 2024 and sell it today you would earn a total of 513.00 from holding ProShares SP Kensho or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. ProShares SP Kensho
Performance |
| Timeline |
| Pfizer Inc |
| ProShares SP Kensho |
Pfizer and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and ProShares
The main advantage of trading using opposite Pfizer and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
| ProShares vs. Nexalin Technology | ProShares vs. Kilroy Realty Corp | ProShares vs. Highwoods Properties | ProShares vs. Karat Packaging |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |