Correlation Between Pfizer and X4 Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Pfizer and X4 Pharmaceuticals 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 X4 Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pfizer Inc and X4 Pharmaceuticals, you can compare the effects of market volatilities on Pfizer and X4 Pharmaceuticals 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 X4 Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and X4 Pharmaceuticals.

Diversification Opportunities for Pfizer and X4 Pharmaceuticals

-0.39

Correlation Coefficient

Pfizer  X4 Pharmaceuticals

Very good diversification

The 3 months correlation between Pfizer and XFOR is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and X4 Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X4 Pharmaceuticals 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 X4 Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X4 Pharmaceuticals has no effect on the direction of Pfizer i.e., Pfizer and X4 Pharmaceuticals go up and down completely randomly.

Pair Corralation between Pfizer and X4 Pharmaceuticals

Considering the 90-day investment horizon Pfizer is expected to generate 4.97 times less return on investment than X4 Pharmaceuticals. But when comparing it to its historical volatility, Pfizer Inc is 9.29 times less risky than X4 Pharmaceuticals. It trades about 0.13 of its potential returns per unit of risk. X4 Pharmaceuticals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  339.00  in X4 Pharmaceuticals on May 26, 2025 and sell it today you would earn a total of  53.00  from holding X4 Pharmaceuticals or generate 15.63% 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.  X4 Pharmaceuticals

Pfizer Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Pfizer may actually be approaching a critical reversion point that can send shares even higher in September 2025.

X4 Pharmaceuticals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in X4 Pharmaceuticals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, X4 Pharmaceuticals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pfizer and X4 Pharmaceuticals

The main advantage of trading using opposite Pfizer and X4 Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, X4 Pharmaceuticals 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 X4 Pharmaceuticals will offset losses from the drop in X4 Pharmaceuticals' long position.

The idea behind Pfizer Inc and X4 Pharmaceuticals 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.