Correlation Between Pfizer and CSB Bancorp

Can any of the company-specific risk be diversified away by investing in both Pfizer and CSB 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 CSB 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 CSB Bancorp, you can compare the effects of market volatilities on Pfizer and CSB 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 CSB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and CSB Bancorp.

Diversification Opportunities for Pfizer and CSB Bancorp

0.64

Correlation Coefficient

Pfizer  CSB Bancorp

Poor diversification

The 3 months correlation between Pfizer and CSB is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and CSB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSB 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 CSB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSB Bancorp has no effect on the direction of Pfizer i.e., Pfizer and CSB Bancorp go up and down completely randomly.

Pair Corralation between Pfizer and CSB Bancorp

Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the CSB Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 1.44 times less risky than CSB Bancorp. The stock trades about -0.02 of its potential returns per unit of risk. The CSB Bancorp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,581  in CSB Bancorp on April 28, 2025 and sell it today you would earn a total of  819.00  from holding CSB Bancorp or generate 22.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	73.74%
Values	Daily Returns

Pfizer Inc  vs.  CSB Bancorp

Pfizer Inc

Risk-Adjusted Performance

OK

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 weak technical and fundamental indicators, Pfizer may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CSB Bancorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CSB Bancorp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, CSB Bancorp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Pfizer and CSB Bancorp

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

The idea behind Pfizer Inc and CSB 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.