Correlation Between Pfizer and SPDR SSgA
Can any of the company-specific risk be diversified away by investing in both Pfizer and SPDR SSgA 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 SPDR SSgA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and SPDR SSgA Ultra, you can compare the effects of market volatilities on Pfizer and SPDR SSgA 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 SPDR SSgA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and SPDR SSgA.
Diversification Opportunities for Pfizer and SPDR SSgA
Excellent diversification
The 3 months correlation between Pfizer and SPDR is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and SPDR SSgA Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSgA Ultra 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 SPDR SSgA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSgA Ultra has no effect on the direction of Pfizer i.e., Pfizer and SPDR SSgA go up and down completely randomly.
Pair Corralation between Pfizer and SPDR SSgA
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the SPDR SSgA. In addition to that, Pfizer is 20.94 times more volatile than SPDR SSgA Ultra. It trades about -0.04 of its total potential returns per unit of risk. SPDR SSgA Ultra is currently generating about 0.31 per unit of volatility. If you would invest 3,753 in SPDR SSgA Ultra on August 28, 2024 and sell it today you would earn a total of 305.00 from holding SPDR SSgA Ultra or generate 8.13% 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. SPDR SSgA Ultra
Performance |
| Timeline |
| Pfizer Inc |
| SPDR SSgA Ultra |
Pfizer and SPDR SSgA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and SPDR SSgA
The main advantage of trading using opposite Pfizer and SPDR SSgA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, SPDR SSgA 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 SPDR SSgA will offset losses from the drop in SPDR SSgA's long position.| Pfizer vs. Capricor Therapeutics | Pfizer vs. Soleno Therapeutics | Pfizer vs. Bio Path Holdings | Pfizer vs. Moleculin Biotech |
| SPDR SSgA vs. SPDR Bloomberg Investment | SPDR SSgA vs. SPDR Bloomberg 1 10 | SPDR SSgA vs. iShares Short Maturity | SPDR SSgA vs. Invesco Ultra Short |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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