Correlation Between Pfizer and ETF Series
Can any of the company-specific risk be diversified away by investing in both Pfizer and ETF Series 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 ETF Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and ETF Series Solutions, you can compare the effects of market volatilities on Pfizer and ETF Series 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 ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and ETF Series.
Diversification Opportunities for Pfizer and ETF Series
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pfizer and ETF is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions 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 ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of Pfizer i.e., Pfizer and ETF Series go up and down completely randomly.
Pair Corralation between Pfizer and ETF Series
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the ETF Series. In addition to that, Pfizer is 1.89 times more volatile than ETF Series Solutions. It trades about -0.36 of its total potential returns per unit of risk. ETF Series Solutions is currently generating about 0.03 per unit of volatility. If you would invest 3,440 in ETF Series Solutions on August 23, 2024 and sell it today you would earn a total of 17.00 from holding ETF Series Solutions or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. ETF Series Solutions
Performance |
| Timeline |
| Pfizer Inc |
| ETF Series Solutions |
Pfizer and ETF Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and ETF Series
The main advantage of trading using opposite Pfizer and ETF Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, ETF Series 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 ETF Series will offset losses from the drop in ETF Series' long position.| Pfizer vs. Johnson Johnson | Pfizer vs. Small Cap Core | Pfizer vs. Freedom Holding Corp | Pfizer vs. Gfl Environmental Holdings |
| ETF Series vs. Aptus Collared Income | ETF Series vs. Core Alternative ETF | ETF Series vs. Aptus Drawdown Managed | ETF Series vs. Amplify BlackSwan Growth |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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