Correlation Between Pfizer and GeneDx Holdings
Can any of the company-specific risk be diversified away by investing in both Pfizer and GeneDx Holdings 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 GeneDx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and GeneDx Holdings Corp, you can compare the effects of market volatilities on Pfizer and GeneDx Holdings 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 GeneDx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and GeneDx Holdings.
Diversification Opportunities for Pfizer and GeneDx Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pfizer and GeneDx is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and GeneDx Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneDx Holdings Corp 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 GeneDx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneDx Holdings Corp has no effect on the direction of Pfizer i.e., Pfizer and GeneDx Holdings go up and down completely randomly.
Pair Corralation between Pfizer and GeneDx Holdings
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the GeneDx Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 4.65 times less risky than GeneDx Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The GeneDx Holdings Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,145 in GeneDx Holdings Corp on August 30, 2024 and sell it today you would earn a total of 5,798 from holding GeneDx Holdings Corp or generate 270.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. GeneDx Holdings Corp
Performance |
| Timeline |
| Pfizer Inc |
| GeneDx Holdings Corp |
Pfizer and GeneDx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and GeneDx Holdings
The main advantage of trading using opposite Pfizer and GeneDx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, GeneDx Holdings 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 GeneDx Holdings will offset losses from the drop in GeneDx Holdings' long position.| Pfizer vs. Emergent Biosolutions | Pfizer vs. Bausch Health Companies | Pfizer vs. Neurocrine Biosciences | Pfizer vs. Teva Pharma Industries |
| GeneDx Holdings vs. Privia Health Group | GeneDx Holdings vs. HealthStream | GeneDx Holdings vs. Certara | GeneDx Holdings vs. National Research 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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