Correlation Between Pfizer and PETROLEOS
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By analyzing existing cross correlation between Pfizer Inc and PETROLEOS MEXICANOS 65, you can compare the effects of market volatilities on Pfizer and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and PETROLEOS.
Diversification Opportunities for Pfizer and PETROLEOS
Very weak diversification
The 3 months correlation between Pfizer and PETROLEOS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and PETROLEOS MEXICANOS 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of Pfizer i.e., Pfizer and PETROLEOS go up and down completely randomly.
Pair Corralation between Pfizer and PETROLEOS
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the PETROLEOS. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 1.39 times less risky than PETROLEOS. The stock trades about -0.08 of its potential returns per unit of risk. The PETROLEOS MEXICANOS 65 is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 7,044 in PETROLEOS MEXICANOS 65 on September 4, 2024 and sell it today you would lose (419.00) from holding PETROLEOS MEXICANOS 65 or give up 5.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Pfizer Inc vs. PETROLEOS MEXICANOS 65
Performance |
| Timeline |
| Pfizer Inc |
| PETROLEOS MEXICANOS |
Pfizer and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and PETROLEOS
The main advantage of trading using opposite Pfizer and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
| PETROLEOS vs. The Travelers Companies | PETROLEOS vs. GE Aerospace | PETROLEOS vs. Walmart | PETROLEOS 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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