Correlation Between Pfizer and Acceleware

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

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

Diversification Opportunities for Pfizer and Acceleware

0.07

Correlation Coefficient

Pfizer  Acceleware

Significant diversification

The 3 months correlation between Pfizer and Acceleware is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Acceleware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acceleware 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 Acceleware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acceleware has no effect on the direction of Pfizer i.e., Pfizer and Acceleware go up and down completely randomly.

Pair Corralation between Pfizer and Acceleware

Considering the 90-day investment horizon Pfizer is expected to generate 6721.0 times less return on investment than Acceleware. But when comparing it to its historical volatility, Pfizer Inc is 11.68 times less risky than Acceleware. It trades about 0.0 of its potential returns per unit of risk. Acceleware is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  9.00  in Acceleware on October 7, 2024 and sell it today you would lose (1.50) from holding Acceleware or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Pfizer Inc  vs.  Acceleware

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 latest abnormal performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Acceleware

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Acceleware are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Acceleware reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pfizer and Acceleware

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

The idea behind Pfizer Inc and Acceleware 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.