Correlation Between Pfizer and 963320AX4

Can any of the company-specific risk be diversified away by investing in both Pfizer and 963320AX4 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 963320AX4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pfizer Inc and US963320AX45, you can compare the effects of market volatilities on Pfizer and 963320AX4 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 963320AX4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and 963320AX4.

Diversification Opportunities for Pfizer and 963320AX4

0.0

Correlation Coefficient

Pfizer  963320AX4

Pay attention - limited upside

The 3 months correlation between Pfizer and 963320AX4 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and US963320AX45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US963320AX45 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 963320AX4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US963320AX45 has no effect on the direction of Pfizer i.e., Pfizer and 963320AX4 go up and down completely randomly.

Pair Corralation between Pfizer and 963320AX4

If you would invest  2,303  in Pfizer Inc on May 4, 2025 and sell it today you would earn a total of  46.00  from holding Pfizer Inc or generate 2.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Pfizer Inc  vs.  US963320AX45

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.

US963320AX45

Risk-Adjusted Performance

Very Weak

Over the last 90 days US963320AX45 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 963320AX4 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pfizer and 963320AX4

The main advantage of trading using opposite Pfizer and 963320AX4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, 963320AX4 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 963320AX4 will offset losses from the drop in 963320AX4's long position.

The idea behind Pfizer Inc and US963320AX45 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.