Correlation Between CRA International and PFIZER
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By analyzing existing cross correlation between CRA International and PFIZER INC 3, you can compare the effects of market volatilities on CRA International and PFIZER 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 CRA International with a short position of PFIZER. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRA International and PFIZER.
Diversification Opportunities for CRA International and PFIZER
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRA and PFIZER is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding CRA International and PFIZER INC 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFIZER INC 3 and CRA International 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 CRA International are associated (or correlated) with PFIZER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFIZER INC 3 has no effect on the direction of CRA International i.e., CRA International and PFIZER go up and down completely randomly.
Pair Corralation between CRA International and PFIZER
Given the investment horizon of 90 days CRA International is expected to generate 4.6 times more return on investment than PFIZER. However, CRA International is 4.6 times more volatile than PFIZER INC 3. It trades about 0.05 of its potential returns per unit of risk. PFIZER INC 3 is currently generating about 0.01 per unit of risk. If you would invest 12,007 in CRA International on September 24, 2024 and sell it today you would earn a total of 6,448 from holding CRA International or generate 53.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
CRA International vs. PFIZER INC 3
Performance |
Timeline |
CRA International |
PFIZER INC 3 |
CRA International and PFIZER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CRA International and PFIZER
The main advantage of trading using opposite CRA International and PFIZER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRA International position performs unexpectedly, PFIZER 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 PFIZER will offset losses from the drop in PFIZER's long position.CRA International vs. Franklin Covey | CRA International vs. ICF International | CRA International vs. Huron Consulting Group | CRA International vs. FTI Consulting |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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