Correlation Between Pfizer and AMERICAN
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By analyzing existing cross correlation between Pfizer Inc and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on Pfizer and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and AMERICAN.
Diversification Opportunities for Pfizer and AMERICAN
Poor diversification
The 3 months correlation between Pfizer and AMERICAN is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Pfizer i.e., Pfizer and AMERICAN go up and down completely randomly.
Pair Corralation between Pfizer and AMERICAN
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the AMERICAN. In addition to that, Pfizer is 2.21 times more volatile than AMERICAN EXPRESS CR. It trades about -0.07 of its total potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about 0.01 per unit of volatility. If you would invest 9,474 in AMERICAN EXPRESS CR on September 2, 2024 and sell it today you would earn a total of 218.00 from holding AMERICAN EXPRESS CR or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.97% |
| Values | Daily Returns |
Pfizer Inc vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| Pfizer Inc |
| AMERICAN EXPRESS |
Pfizer and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and AMERICAN
The main advantage of trading using opposite Pfizer and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
| AMERICAN vs. Uber Technologies | AMERICAN vs. Valneva SE ADR | AMERICAN vs. Arrow Electronics | AMERICAN vs. Analog Devices |
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 CEOs Directory module to screen CEOs from public companies around the world.
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