Correlation Between Pfizer and One Step

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

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

Diversification Opportunities for Pfizer and One Step

-0.61

Correlation Coefficient

Pfizer  One Step

Excellent diversification

The 3 months correlation between Pfizer and One is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and One Step Vending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Step Vending 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 One Step. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Step Vending has no effect on the direction of Pfizer i.e., Pfizer and One Step go up and down completely randomly.

Pair Corralation between Pfizer and One Step

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.13 times more return on investment than One Step. However, Pfizer Inc is 7.82 times less risky than One Step. It trades about 0.14 of its potential returns per unit of risk. One Step Vending is currently generating about 0.0 per unit of risk. If you would invest  2,222  in Pfizer Inc on May 15, 2025 and sell it today you would earn a total of  283.00  from holding Pfizer Inc or generate 12.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Pfizer Inc  vs.  One Step Vending

Pfizer Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Pfizer exhibited solid returns over the last few months and may actually be approaching a breakup point.

One Step Vending

Risk-Adjusted Performance

Weakest

Over the last 90 days One Step Vending has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, One Step is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pfizer and One Step

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

The idea behind Pfizer Inc and One Step Vending 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.