Correlation Between Pfizer and Origin Energy
Can any of the company-specific risk be diversified away by investing in both Pfizer and Origin Energy 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 Origin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Origin Energy Ltd, you can compare the effects of market volatilities on Pfizer and Origin Energy 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 Origin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Origin Energy.
Diversification Opportunities for Pfizer and Origin Energy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pfizer and Origin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Origin Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Energy 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 Origin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Energy has no effect on the direction of Pfizer i.e., Pfizer and Origin Energy go up and down completely randomly.
Pair Corralation between Pfizer and Origin Energy
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Origin Energy. In addition to that, Pfizer is 10.03 times more volatile than Origin Energy Ltd. It trades about -0.23 of its total potential returns per unit of risk. Origin Energy Ltd is currently generating about 0.22 per unit of volatility. If you would invest 658.00 in Origin Energy Ltd on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Origin Energy Ltd or generate 0.76% 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. Origin Energy Ltd
Performance |
| Timeline |
| Pfizer Inc |
| Origin Energy |
Pfizer and Origin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Origin Energy
The main advantage of trading using opposite Pfizer and Origin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Origin Energy 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 Origin Energy will offset losses from the drop in Origin Energy's long position.| Pfizer vs. Capricor Therapeutics | Pfizer vs. Soleno Therapeutics | Pfizer vs. Bio Path Holdings | Pfizer vs. Moleculin Biotech |
| Origin Energy vs. BP plc | Origin Energy vs. China Petroleum Chemical | Origin Energy vs. TotalEnergies SE | Origin Energy vs. Shell PLC |
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.
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