Correlation Between Pfizer and PGIM Nasdaq

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

By analyzing existing cross correlation between Pfizer Inc and PGIM Nasdaq 100 Buffer, you can compare the effects of market volatilities on Pfizer and PGIM Nasdaq 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 PGIM Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and PGIM Nasdaq.

Diversification Opportunities for Pfizer and PGIM Nasdaq

0.25

Correlation Coefficient

Pfizer  PGIM Nasdaq

Modest diversification

The 3 months correlation between Pfizer and PGIM is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and PGIM Nasdaq 100 Buffer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Nasdaq 100 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 PGIM Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Nasdaq 100 has no effect on the direction of Pfizer i.e., Pfizer and PGIM Nasdaq go up and down completely randomly.

Pair Corralation between Pfizer and PGIM Nasdaq

Considering the 90-day investment horizon Pfizer Inc is expected to generate 8.7 times more return on investment than PGIM Nasdaq. However, Pfizer is 8.7 times more volatile than PGIM Nasdaq 100 Buffer. It trades about 0.06 of its potential returns per unit of risk. PGIM Nasdaq 100 Buffer is currently generating about 0.16 per unit of risk. If you would invest  2,409  in Pfizer Inc on July 26, 2025 and sell it today you would earn a total of  67.00  from holding Pfizer Inc or generate 2.78% return on investment over 90 days.

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

Pfizer Inc  vs.  PGIM Nasdaq 100 Buffer

Pfizer Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

PGIM Nasdaq 100

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PGIM Nasdaq 100 Buffer are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, PGIM Nasdaq is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Pfizer and PGIM Nasdaq

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

The idea behind Pfizer Inc and PGIM Nasdaq 100 Buffer 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 Global Correlations module to find global opportunities by holding instruments from different markets.