Correlation Between Pfizer and Occidental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pfizer Inc and Occidental Petroleum 795, you can compare the effects of market volatilities on Pfizer and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Occidental.
Diversification Opportunities for Pfizer and Occidental
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pfizer and Occidental is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Occidental Petroleum 795 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 795 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum 795 has no effect on the direction of Pfizer i.e., Pfizer and Occidental go up and down completely randomly.
Pair Corralation between Pfizer and Occidental
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Occidental. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 33.55 times less risky than Occidental. The stock trades about -0.08 of its potential returns per unit of risk. The Occidental Petroleum 795 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,025 in Occidental Petroleum 795 on September 5, 2024 and sell it today you would earn a total of 111.00 from holding Occidental Petroleum 795 or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.26% |
| Values | Daily Returns |
Pfizer Inc vs. Occidental Petroleum 795
Performance |
| Timeline |
| Pfizer Inc |
| Occidental Petroleum 795 |
Pfizer and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Occidental
The main advantage of trading using opposite Pfizer and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
| Occidental vs. Saia Inc | Occidental vs. Mesa Air Group | Occidental vs. Lindblad Expeditions Holdings | Occidental vs. Verra Mobility Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |