Correlation Between Pfizer and BlockchainK2 Corp

Can any of the company-specific risk be diversified away by investing in both Pfizer and BlockchainK2 Corp 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 Pfizer and BlockchainK2 Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pfizer Inc and BlockchainK2 Corp, you can compare the effects of market volatilities on Pfizer and BlockchainK2 Corp 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 Pfizer with a short position of BlockchainK2 Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and BlockchainK2 Corp.

Diversification Opportunities for Pfizer and BlockchainK2 Corp

-0.13

Correlation Coefficient

Pfizer  BlockchainK2 Corp

Good diversification

The 3 months correlation between Pfizer and BlockchainK2 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and BlockchainK2 Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlockchainK2 Corp and Pfizer 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 Pfizer Inc are associated (or correlated) with BlockchainK2 Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlockchainK2 Corp has no effect on the direction of Pfizer i.e., Pfizer and BlockchainK2 Corp go up and down completely randomly.

Pair Corralation between Pfizer and BlockchainK2 Corp

Considering the 90-day investment horizon Pfizer is expected to generate 95.94 times less return on investment than BlockchainK2 Corp. But when comparing it to its historical volatility, Pfizer Inc is 39.19 times less risky than BlockchainK2 Corp. It trades about 0.08 of its potential returns per unit of risk. BlockchainK2 Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1.60  in BlockchainK2 Corp on July 3, 2025 and sell it today you would earn a total of  4.40  from holding BlockchainK2 Corp or generate 275.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Pfizer Inc  vs.  BlockchainK2 Corp

Pfizer Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Pfizer may actually be approaching a critical reversion point that can send shares even higher in November 2025.

BlockchainK2 Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BlockchainK2 Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, BlockchainK2 Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pfizer and BlockchainK2 Corp

The main advantage of trading using opposite Pfizer and BlockchainK2 Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, BlockchainK2 Corp 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 BlockchainK2 Corp will offset losses from the drop in BlockchainK2 Corp's long position.

The idea behind Pfizer Inc and BlockchainK2 Corp 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.