Correlation Between Mdica Sur and Pfizer

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

By analyzing existing cross correlation between Mdica Sur SAB and Pfizer Inc, you can compare the effects of market volatilities on Mdica Sur 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 Mdica Sur with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mdica Sur and Pfizer.

Diversification Opportunities for Mdica Sur and Pfizer

0.0

Correlation Coefficient

Mdica Sur  Pfizer

Pay attention - limited upside

The 3 months correlation between Mdica and Pfizer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mdica Sur SAB and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Mdica Sur 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 Mdica Sur SAB 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 has no effect on the direction of Mdica Sur i.e., Mdica Sur and Pfizer go up and down completely randomly.

Pair Corralation between Mdica Sur and Pfizer

If you would invest  48,019  in Pfizer Inc on October 7, 2024 and sell it today you would earn a total of  7,181  from holding Pfizer Inc or generate 14.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.81%
Values	Daily Returns

Mdica Sur SAB  vs.  Pfizer Inc

Mdica Sur SAB

Risk-Adjusted Performance

0 of 100

Good

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

Pfizer Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pfizer Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mdica Sur and Pfizer

The main advantage of trading using opposite Mdica Sur and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mdica Sur 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.

The idea behind Mdica Sur SAB and Pfizer Inc 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.