Correlation Between Pfizer and MicroSectors FANG
Can any of the company-specific risk be diversified away by investing in both Pfizer and MicroSectors FANG 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 MicroSectors FANG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and MicroSectors FANG Index, you can compare the effects of market volatilities on Pfizer and MicroSectors FANG 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 MicroSectors FANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and MicroSectors FANG.
Diversification Opportunities for Pfizer and MicroSectors FANG
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pfizer and MicroSectors is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and MicroSectors FANG Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroSectors FANG Index 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 MicroSectors FANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroSectors FANG Index has no effect on the direction of Pfizer i.e., Pfizer and MicroSectors FANG go up and down completely randomly.
Pair Corralation between Pfizer and MicroSectors FANG
Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.5 times more return on investment than MicroSectors FANG. However, Pfizer Inc is 2.02 times less risky than MicroSectors FANG. It trades about 0.09 of its potential returns per unit of risk. MicroSectors FANG Index is currently generating about -0.3 per unit of risk. If you would invest 2,295 in Pfizer Inc on April 29, 2025 and sell it today you would earn a total of 184.00 from holding Pfizer Inc or generate 8.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Pfizer Inc vs. MicroSectors FANG Index
Performance |
Timeline |
Pfizer Inc |
MicroSectors FANG Index |
Pfizer and MicroSectors FANG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pfizer and MicroSectors FANG
The main advantage of trading using opposite Pfizer and MicroSectors FANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, MicroSectors FANG 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 MicroSectors FANG will offset losses from the drop in MicroSectors FANG's long position.Pfizer vs. Agilent Technologies | Pfizer vs. Equillium | Pfizer vs. KING PHARMACEUTICALS INC | Pfizer vs. DiaMedica Therapeutics |
Check out your portfolio center.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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |