Correlation Between Pfizer and Predictive Oncology

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

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

Diversification Opportunities for Pfizer and Predictive Oncology

-0.74

Correlation Coefficient

Pfizer  Predictive Oncology

Pay attention - limited upside

The 3 months correlation between Pfizer and Predictive is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Predictive Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictive Oncology 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 Predictive Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictive Oncology has no effect on the direction of Pfizer i.e., Pfizer and Predictive Oncology go up and down completely randomly.

Pair Corralation between Pfizer and Predictive Oncology

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.43 times more return on investment than Predictive Oncology. However, Pfizer Inc is 2.32 times less risky than Predictive Oncology. It trades about 0.09 of its potential returns per unit of risk. Predictive Oncology is currently generating about -0.11 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	Weak
Accuracy	100.0%
Values	Daily Returns

Pfizer Inc  vs.  Predictive Oncology

Pfizer Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 6 (%) 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.

Predictive Oncology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Predictive Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Pfizer and Predictive Oncology

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

The idea behind Pfizer Inc and Predictive Oncology 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.