Correlation Between Mesabi Trust and Pfizer

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

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

Diversification Opportunities for Mesabi Trust and Pfizer

-0.11

Correlation Coefficient

Mesabi Trust  Pfizer

Good diversification

The 3 months correlation between Mesabi and Pfizer is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mesabi Trust and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Mesabi Trust 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 Mesabi Trust 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 Mesabi Trust i.e., Mesabi Trust and Pfizer go up and down completely randomly.

Pair Corralation between Mesabi Trust and Pfizer

Considering the 90-day investment horizon Mesabi Trust is expected to generate 1.89 times more return on investment than Pfizer. However, Mesabi Trust is 1.89 times more volatile than Pfizer Inc. It trades about 0.03 of its potential returns per unit of risk. Pfizer Inc is currently generating about 0.03 per unit of risk. If you would invest  2,780  in Mesabi Trust on May 2, 2025 and sell it today you would earn a total of  102.00  from holding Mesabi Trust or generate 3.67% return on investment over 90 days.

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

Mesabi Trust  vs.  Pfizer Inc

Mesabi Trust

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mesabi Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Mesabi Trust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pfizer Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 2 (%) 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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Mesabi Trust and Pfizer

The main advantage of trading using opposite Mesabi Trust and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesabi Trust 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 Mesabi Trust 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.