Correlation Between Pfizer and BAYNGR

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

By analyzing existing cross correlation between Pfizer Inc and BAYNGR 395 15 APR 45, you can compare the effects of market volatilities on Pfizer and BAYNGR 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 BAYNGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and BAYNGR.

Diversification Opportunities for Pfizer and BAYNGR

-0.24

Correlation Coefficient

Pfizer  BAYNGR

Very good diversification

The 3 months correlation between Pfizer and BAYNGR is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and BAYNGR 395 15 APR 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAYNGR 5 15 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 BAYNGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAYNGR 5 15 has no effect on the direction of Pfizer i.e., Pfizer and BAYNGR go up and down completely randomly.

Pair Corralation between Pfizer and BAYNGR

Considering the 90-day investment horizon Pfizer is expected to generate 5.14 times less return on investment than BAYNGR. In addition to that, Pfizer is 1.12 times more volatile than BAYNGR 395 15 APR 45. It trades about 0.03 of its total potential returns per unit of risk. BAYNGR 395 15 APR 45 is currently generating about 0.16 per unit of volatility. If you would invest  6,762  in BAYNGR 395 15 APR 45 on May 4, 2025 and sell it today you would earn a total of  308.00  from holding BAYNGR 395 15 APR 45 or generate 4.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	33.33%
Values	Daily Returns

Pfizer Inc  vs.  BAYNGR 395 15 APR 45

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.

BAYNGR 5 15

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BAYNGR 395 15 APR 45 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BAYNGR sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pfizer and BAYNGR

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

The idea behind Pfizer Inc and BAYNGR 395 15 APR 45 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..