Correlation Between Beyond Air and Pfizer
Can any of the company-specific risk be diversified away by investing in both Beyond Air 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 Beyond Air and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and Pfizer Inc, you can compare the effects of market volatilities on Beyond Air 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 Beyond Air with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and Pfizer.
Diversification Opportunities for Beyond Air and Pfizer
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beyond and Pfizer is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Beyond Air 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 Beyond Air 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 Beyond Air i.e., Beyond Air and Pfizer go up and down completely randomly.
Pair Corralation between Beyond Air and Pfizer
Given the investment horizon of 90 days Beyond Air is expected to under-perform the Pfizer. In addition to that, Beyond Air is 4.53 times more volatile than Pfizer Inc. It trades about -0.03 of its total potential returns per unit of risk. Pfizer Inc is currently generating about 0.19 per unit of volatility. If you would invest 2,486 in Pfizer Inc on September 18, 2024 and sell it today you would earn a total of 156.50 from holding Pfizer Inc or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Air vs. Pfizer Inc
Performance |
| Timeline |
| Beyond Air |
| Pfizer Inc |
Beyond Air and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Air and Pfizer
The main advantage of trading using opposite Beyond Air and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air 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.| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. PAVmed Series Z | Beyond Air vs. Clearpoint Neuro |
| Pfizer vs. Emergent Biosolutions | Pfizer vs. Neurocrine Biosciences | Pfizer vs. Teva Pharma Industries | Pfizer vs. Haleon plc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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