Correlation Between Exxon and PFIZER
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By analyzing existing cross correlation between Exxon Mobil Corp and PFIZER INC 43, you can compare the effects of market volatilities on Exxon 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 Exxon with a short position of PFIZER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and PFIZER.
Diversification Opportunities for Exxon and PFIZER
Excellent diversification
The 3 months correlation between Exxon and PFIZER is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and PFIZER INC 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFIZER INC 43 and Exxon 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 Exxon Mobil Corp 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 43 has no effect on the direction of Exxon i.e., Exxon and PFIZER go up and down completely randomly.
Pair Corralation between Exxon and PFIZER
Considering the 90-day investment horizon Exxon is expected to generate 87.23 times less return on investment than PFIZER. But when comparing it to its historical volatility, Exxon Mobil Corp is 49.28 times less risky than PFIZER. It trades about 0.04 of its potential returns per unit of risk. PFIZER INC 43 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,552 in PFIZER INC 43 on August 24, 2024 and sell it today you would lose (919.00) from holding PFIZER INC 43 or give up 9.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.86% |
| Values | Daily Returns |
Exxon Mobil Corp vs. PFIZER INC 43
Performance |
| Timeline |
| Exxon Mobil Corp |
| PFIZER INC 43 |
Exxon and PFIZER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and PFIZER
The main advantage of trading using opposite Exxon and PFIZER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon 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.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| PFIZER vs. Thai Beverage PCL | PFIZER vs. Boston Beer | PFIZER vs. Hf Foods Group | PFIZER vs. Marfrig Global Foods |
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 Stocks Directory module to find actively traded stocks across global markets.
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