Correlation Between Pfizer and Oshaughnessy Market
Can any of the company-specific risk be diversified away by investing in both Pfizer and Oshaughnessy Market 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 Oshaughnessy Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Oshaughnessy Market Leaders, you can compare the effects of market volatilities on Pfizer and Oshaughnessy Market 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 Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Oshaughnessy Market.
Diversification Opportunities for Pfizer and Oshaughnessy Market
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pfizer and Oshaughnessy is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market 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 Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of Pfizer i.e., Pfizer and Oshaughnessy Market go up and down completely randomly.
Pair Corralation between Pfizer and Oshaughnessy Market
Considering the 90-day investment horizon Pfizer is expected to generate 2.48 times less return on investment than Oshaughnessy Market. In addition to that, Pfizer is 1.51 times more volatile than Oshaughnessy Market Leaders. It trades about 0.06 of its total potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about 0.23 per unit of volatility. If you would invest 1,962 in Oshaughnessy Market Leaders on November 4, 2024 and sell it today you would earn a total of 74.00 from holding Oshaughnessy Market Leaders or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. Oshaughnessy Market Leaders
Performance |
| Timeline |
| Pfizer Inc |
| Oshaughnessy Market |
Pfizer and Oshaughnessy Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Oshaughnessy Market
The main advantage of trading using opposite Pfizer and Oshaughnessy Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Oshaughnessy Market 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 Oshaughnessy Market will offset losses from the drop in Oshaughnessy Market's long position.| Pfizer vs. AbbVie Inc | Pfizer vs. Merck Company | Pfizer vs. Eli Lilly and | Pfizer vs. Bristol Myers Squibb |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |