Correlation Between Pfizer and Windtree Therapeutics

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

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

Diversification Opportunities for Pfizer and Windtree Therapeutics

-0.24

Correlation Coefficient

Pfizer  Windtree Therapeutics

Very good diversification

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

Pair Corralation between Pfizer and Windtree Therapeutics

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.13 times more return on investment than Windtree Therapeutics. However, Pfizer Inc is 7.85 times less risky than Windtree Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Windtree Therapeutics is currently generating about 0.0 per unit of risk. If you would invest  2,355  in Pfizer Inc on April 30, 2025 and sell it today you would earn a total of  76.00  from holding Pfizer Inc or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pfizer Inc  vs.  Windtree Therapeutics

Pfizer Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 3 (%) 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.

Windtree Therapeutics

Risk-Adjusted Performance

Weak

Over the last 90 days Windtree Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Windtree Therapeutics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Pfizer and Windtree Therapeutics

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

The idea behind Pfizer Inc and Windtree Therapeutics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.