Correlation Between Kestrel Group, and Pfizer

Can any of the company-specific risk be diversified away by investing in both Kestrel Group, 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 Kestrel Group, and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kestrel Group, and Pfizer Inc, you can compare the effects of market volatilities on Kestrel Group, 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 Kestrel Group, with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kestrel Group, and Pfizer.

Diversification Opportunities for Kestrel Group, and Pfizer

-0.48

Correlation Coefficient

Kestrel Group,  Pfizer

Very good diversification

The 3 months correlation between Kestrel and Pfizer is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kestrel Group, and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Kestrel Group, 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 Kestrel Group, 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 Kestrel Group, i.e., Kestrel Group, and Pfizer go up and down completely randomly.

Pair Corralation between Kestrel Group, and Pfizer

Allowing for the 90-day total investment horizon Kestrel Group, is expected to under-perform the Pfizer. In addition to that, Kestrel Group, is 2.62 times more volatile than Pfizer Inc. It trades about -0.36 of its total potential returns per unit of risk. Pfizer Inc is currently generating about 0.11 per unit of volatility. If you would invest  2,439  in Pfizer Inc on September 10, 2025 and sell it today you would earn a total of  94.00  from holding Pfizer Inc or generate 3.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kestrel Group,  vs.  Pfizer Inc

Kestrel Group,

Risk-Adjusted Performance

Weakest

Over the last 90 days Kestrel Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pfizer Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Kestrel Group, and Pfizer

The main advantage of trading using opposite Kestrel Group, and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kestrel Group, 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.

The idea behind Kestrel Group, and Pfizer Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.