Correlation Between Pfizer and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pfizer Inc and GENERAL ELEC CAP, you can compare the effects of market volatilities on Pfizer and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and GENERAL.
Diversification Opportunities for Pfizer and GENERAL
Very good diversification
The 3 months correlation between Pfizer and GENERAL is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Pfizer i.e., Pfizer and GENERAL go up and down completely randomly.
Pair Corralation between Pfizer and GENERAL
Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.46 times more return on investment than GENERAL. However, Pfizer Inc is 2.17 times less risky than GENERAL. It trades about -0.23 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.44 per unit of risk. If you would invest 2,842 in Pfizer Inc on August 28, 2024 and sell it today you would lose (225.00) from holding Pfizer Inc or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Pfizer Inc vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Pfizer Inc |
| GENERAL ELEC CAP |
Pfizer and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and GENERAL
The main advantage of trading using opposite Pfizer and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Pfizer vs. Capricor Therapeutics | Pfizer vs. Soleno Therapeutics | Pfizer vs. Bio Path Holdings | Pfizer vs. Moleculin Biotech |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |