Correlation Between Pfizer and Procaps Group

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

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

Diversification Opportunities for Pfizer and Procaps Group

-0.49

Correlation Coefficient

Pfizer  Procaps Group

Very good diversification

The 3 months correlation between Pfizer and Procaps is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Procaps Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procaps Group SA 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 Procaps Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procaps Group SA has no effect on the direction of Pfizer i.e., Pfizer and Procaps Group go up and down completely randomly.

Pair Corralation between Pfizer and Procaps Group

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.41 times more return on investment than Procaps Group. However, Pfizer Inc is 2.46 times less risky than Procaps Group. It trades about 0.03 of its potential returns per unit of risk. Procaps Group SA is currently generating about -0.22 per unit of risk. If you would invest  2,419  in Pfizer Inc on July 16, 2025 and sell it today you would earn a total of  54.00  from holding Pfizer Inc or generate 2.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	31.25%
Values	Daily Returns

Pfizer Inc  vs.  Procaps Group SA

Pfizer Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 2 (%) 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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Procaps Group SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Procaps Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Pfizer and Procaps Group

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

The idea behind Pfizer Inc and Procaps Group SA 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.