Correlation Between Pfizer and BAIDU
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By analyzing existing cross correlation between Pfizer Inc and BAIDU INC 3625, you can compare the effects of market volatilities on Pfizer and BAIDU 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 BAIDU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and BAIDU.
Diversification Opportunities for Pfizer and BAIDU
Excellent diversification
The 3 months correlation between Pfizer and BAIDU is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and BAIDU INC 3625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIDU INC 3625 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 BAIDU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAIDU INC 3625 has no effect on the direction of Pfizer i.e., Pfizer and BAIDU go up and down completely randomly.
Pair Corralation between Pfizer and BAIDU
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the BAIDU. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 91.47 times less risky than BAIDU. The stock trades about -0.08 of its potential returns per unit of risk. The BAIDU INC 3625 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9,391 in BAIDU INC 3625 on August 23, 2024 and sell it today you would earn a total of 355.00 from holding BAIDU INC 3625 or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 22.78% |
| Values | Daily Returns |
Pfizer Inc vs. BAIDU INC 3625
Performance |
| Timeline |
| Pfizer Inc |
| BAIDU INC 3625 |
Pfizer and BAIDU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and BAIDU
The main advantage of trading using opposite Pfizer and BAIDU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, BAIDU 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 BAIDU will offset losses from the drop in BAIDU's long position.| Pfizer vs. Johnson Johnson | Pfizer vs. Small Cap Core | Pfizer vs. Freedom Holding Corp | Pfizer vs. Gfl Environmental Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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