Correlation Between Pfizer and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Pfizer and Angel Oak 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 Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Angel Oak High, you can compare the effects of market volatilities on Pfizer and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Angel Oak.
Diversification Opportunities for Pfizer and Angel Oak
Very good diversification
The 3 months correlation between Pfizer and Angel is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Angel Oak High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak High 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak High has no effect on the direction of Pfizer i.e., Pfizer and Angel Oak go up and down completely randomly.
Pair Corralation between Pfizer and Angel Oak
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the Angel Oak. In addition to that, Pfizer is 7.0 times more volatile than Angel Oak High. It trades about -0.05 of its total potential returns per unit of risk. Angel Oak High is currently generating about 0.16 per unit of volatility. If you would invest 1,024 in Angel Oak High on October 11, 2024 and sell it today you would earn a total of 79.00 from holding Angel Oak High or generate 7.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 45.25% |
Values | Daily Returns |
Pfizer Inc vs. Angel Oak High
Performance |
Timeline |
Pfizer Inc |
Angel Oak High |
Pfizer and Angel Oak Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pfizer and Angel Oak
The main advantage of trading using opposite Pfizer and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.Pfizer vs. Emergent Biosolutions | Pfizer vs. Bausch Health Companies | Pfizer vs. Neurocrine Biosciences | Pfizer vs. Teva Pharma Industries |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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