Correlation Between Pfizer and PepGen
Can any of the company-specific risk be diversified away by investing in both Pfizer and PepGen 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 PepGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and PepGen, you can compare the effects of market volatilities on Pfizer and PepGen 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 PepGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and PepGen.
Diversification Opportunities for Pfizer and PepGen
Almost no diversification
The 3 months correlation between Pfizer and PepGen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and PepGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepGen 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 PepGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PepGen has no effect on the direction of Pfizer i.e., Pfizer and PepGen go up and down completely randomly.
Pair Corralation between Pfizer and PepGen
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the PepGen. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 4.34 times less risky than PepGen. The stock trades about -0.07 of its potential returns per unit of risk. The PepGen is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,338 in PepGen on August 28, 2024 and sell it today you would lose (890.00) from holding PepGen or give up 66.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. PepGen
Performance |
| Timeline |
| Pfizer Inc |
| PepGen |
Pfizer and PepGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and PepGen
The main advantage of trading using opposite Pfizer and PepGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, PepGen 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 PepGen will offset losses from the drop in PepGen's long position.| Pfizer vs. Capricor Therapeutics | Pfizer vs. Soleno Therapeutics | Pfizer vs. Bio Path Holdings | Pfizer vs. Moleculin Biotech |
| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
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
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |