Correlation Between Pfizer and HERSHEY
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By analyzing existing cross correlation between Pfizer Inc and HERSHEY 72 percent, you can compare the effects of market volatilities on Pfizer and HERSHEY 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 HERSHEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and HERSHEY.
Diversification Opportunities for Pfizer and HERSHEY
Very good diversification
The 3 months correlation between Pfizer and HERSHEY is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and HERSHEY 72 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HERSHEY 72 percent 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 HERSHEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HERSHEY 72 percent has no effect on the direction of Pfizer i.e., Pfizer and HERSHEY go up and down completely randomly.
Pair Corralation between Pfizer and HERSHEY
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the HERSHEY. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 1.36 times less risky than HERSHEY. The stock trades about -0.21 of its potential returns per unit of risk. The HERSHEY 72 percent is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 10,743 in HERSHEY 72 percent on September 5, 2024 and sell it today you would earn a total of 382.00 from holding HERSHEY 72 percent or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
Pfizer Inc vs. HERSHEY 72 percent
Performance |
| Timeline |
| Pfizer Inc |
| HERSHEY 72 percent |
Pfizer and HERSHEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and HERSHEY
The main advantage of trading using opposite Pfizer and HERSHEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, HERSHEY 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 HERSHEY will offset losses from the drop in HERSHEY's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
| HERSHEY vs. The Travelers Companies | HERSHEY vs. GE Aerospace | HERSHEY vs. Walmart | HERSHEY vs. Pfizer Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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