Correlation Between Pfizer and Vaxart
Can any of the company-specific risk be diversified away by investing in both Pfizer and Vaxart at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pfizer and Vaxart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Vaxart Inc, you can compare the effects of market volatilities on Pfizer and Vaxart 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 Vaxart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Vaxart.
Diversification Opportunities for Pfizer and Vaxart
Very poor diversification
The 3 months correlation between Pfizer and Vaxart is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc 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 Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Pfizer i.e., Pfizer and Vaxart go up and down completely randomly.
Pair Corralation between Pfizer and Vaxart
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Vaxart. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 3.84 times less risky than Vaxart. The stock trades about -0.06 of its potential returns per unit of risk. The Vaxart Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 107.00 in Vaxart Inc on August 27, 2024 and sell it today you would lose (47.00) from holding Vaxart Inc or give up 43.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. Vaxart Inc
Performance |
| Timeline |
| Pfizer Inc |
| Vaxart Inc |
Pfizer and Vaxart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Vaxart
The main advantage of trading using opposite Pfizer and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Vaxart 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 Vaxart will offset losses from the drop in Vaxart'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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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