Correlation Between Pfizer and Cuentas

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

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

Diversification Opportunities for Pfizer and Cuentas

0.13

Correlation Coefficient

Pfizer  Cuentas

Average diversification

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

Pair Corralation between Pfizer and Cuentas

Considering the 90-day investment horizon Pfizer is expected to generate 494.74 times less return on investment than Cuentas. But when comparing it to its historical volatility, Pfizer Inc is 131.55 times less risky than Cuentas. It trades about 0.06 of its potential returns per unit of risk. Cuentas is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Cuentas on September 6, 2025 and sell it today you would earn a total of  2.13  from holding Cuentas or generate 10650.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Pfizer Inc  vs.  Cuentas

Pfizer Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 4 (%) 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 January 2026.

Cuentas

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cuentas are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Cuentas displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pfizer and Cuentas

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

The idea behind Pfizer Inc and Cuentas 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.