Correlation Between Vaxart and Pfizer
Can any of the company-specific risk be diversified away by investing in both Vaxart and Pfizer 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 Vaxart and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaxart Inc and Pfizer Inc, you can compare the effects of market volatilities on Vaxart and Pfizer 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 Vaxart with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaxart and Pfizer.
Diversification Opportunities for Vaxart and Pfizer
Very poor diversification
The 3 months correlation between Vaxart and Pfizer is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Vaxart Inc and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Vaxart 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 Vaxart Inc are associated (or correlated) with Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Vaxart i.e., Vaxart and Pfizer go up and down completely randomly.
Pair Corralation between Vaxart and Pfizer
Given the investment horizon of 90 days Vaxart Inc is expected to generate 3.88 times more return on investment than Pfizer. However, Vaxart is 3.88 times more volatile than Pfizer Inc. It trades about 0.0 of its potential returns per unit of risk. Pfizer Inc is currently generating about -0.08 per unit of risk. If you would invest 130.00 in Vaxart Inc on August 23, 2024 and sell it today you would lose (70.00) from holding Vaxart Inc or give up 53.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaxart Inc vs. Pfizer Inc
Performance |
| Timeline |
| Vaxart Inc |
| Pfizer Inc |
Vaxart and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaxart and Pfizer
The main advantage of trading using opposite Vaxart and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaxart position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.| Vaxart vs. Kiora Pharmaceuticals | Vaxart vs. ZyVersa Therapeutics | Vaxart vs. Sonnet Biotherapeutics Holdings | Vaxart vs. Zura Bio Limited |
| Pfizer vs. Johnson Johnson | Pfizer vs. Small Cap Core | Pfizer vs. Freedom Holding Corp | Pfizer vs. Gfl Environmental Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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