Correlation Between Pfizer and CCFNB Bancorp

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

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

Diversification Opportunities for Pfizer and CCFNB Bancorp

0.66

Correlation Coefficient

Pfizer  CCFNB Bancorp

Poor diversification

The 3 months correlation between Pfizer and CCFNB is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp 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 CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of Pfizer i.e., Pfizer and CCFNB Bancorp go up and down completely randomly.

Pair Corralation between Pfizer and CCFNB Bancorp

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.87 times more return on investment than CCFNB Bancorp. However, Pfizer Inc is 1.15 times less risky than CCFNB Bancorp. It trades about 0.12 of its potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.07 per unit of risk. If you would invest  2,216  in Pfizer Inc on May 8, 2025 and sell it today you would earn a total of  259.00  from holding Pfizer Inc or generate 11.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Pfizer Inc  vs.  CCFNB Bancorp

Pfizer Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 9 (%) 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 September 2025.

CCFNB Bancorp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CCFNB Bancorp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, CCFNB Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Pfizer and CCFNB Bancorp

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

The idea behind Pfizer Inc and CCFNB Bancorp 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.