Correlation Between Pfizer and SOUTHERN
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By analyzing existing cross correlation between Pfizer Inc and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Pfizer and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and SOUTHERN.
Diversification Opportunities for Pfizer and SOUTHERN
Poor diversification
The 3 months correlation between Pfizer and SOUTHERN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Pfizer i.e., Pfizer and SOUTHERN go up and down completely randomly.
Pair Corralation between Pfizer and SOUTHERN
Considering the 90-day investment horizon Pfizer Inc is expected to generate 1.08 times more return on investment than SOUTHERN. However, Pfizer is 1.08 times more volatile than SOUTHERN CALIF EDISON. It trades about -0.06 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.07 per unit of risk. If you would invest 2,624 in Pfizer Inc on September 12, 2024 and sell it today you would lose (67.00) from holding Pfizer Inc or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Pfizer Inc vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Pfizer Inc |
| SOUTHERN CALIF EDISON |
Pfizer and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and SOUTHERN
The main advantage of trading using opposite Pfizer and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Pfizer vs. Victory Integrity Smallmid Cap | Pfizer vs. Hilton Worldwide Holdings | Pfizer vs. NVIDIA | Pfizer vs. JPMorgan Chase Co |
| SOUTHERN vs. Coty Inc | SOUTHERN vs. Yuexiu Transport Infrastructure | SOUTHERN vs. Stepan Company | SOUTHERN vs. Analog Devices |
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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