Correlation Between Pfizer and Touchstone ETF
Can any of the company-specific risk be diversified away by investing in both Pfizer and Touchstone ETF 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 Touchstone ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Touchstone ETF Trust, you can compare the effects of market volatilities on Pfizer and Touchstone ETF 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 Touchstone ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Touchstone ETF.
Diversification Opportunities for Pfizer and Touchstone ETF
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pfizer and Touchstone is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Touchstone ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone ETF Trust 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 Touchstone ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone ETF Trust has no effect on the direction of Pfizer i.e., Pfizer and Touchstone ETF go up and down completely randomly.
Pair Corralation between Pfizer and Touchstone ETF
Considering the 90-day investment horizon Pfizer Inc is expected to generate 23.41 times more return on investment than Touchstone ETF. However, Pfizer is 23.41 times more volatile than Touchstone ETF Trust. It trades about 0.02 of its potential returns per unit of risk. Touchstone ETF Trust is currently generating about 0.38 per unit of risk. If you would invest 2,495 in Pfizer Inc on September 1, 2024 and sell it today you would earn a total of 126.00 from holding Pfizer Inc or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Pfizer Inc vs. Touchstone ETF Trust
Performance |
| Timeline |
| Pfizer Inc |
| Touchstone ETF Trust |
Pfizer and Touchstone ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Touchstone ETF
The main advantage of trading using opposite Pfizer and Touchstone ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Touchstone ETF 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 Touchstone ETF will offset losses from the drop in Touchstone ETF's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
| Touchstone ETF vs. iShares Interest Rate | Touchstone ETF vs. iShares Interest Rate | Touchstone ETF vs. iShares Edge Investment | Touchstone ETF vs. iShares Inflation Hedged |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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