Correlation Between Pfizer and BriaCell Therapeutics

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

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

Diversification Opportunities for Pfizer and BriaCell Therapeutics

-0.51

Correlation Coefficient

Pfizer  BriaCell Therapeutics

Excellent diversification

The 3 months correlation between Pfizer and BriaCell is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and BriaCell Therapeutics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BriaCell Therapeutics 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 BriaCell Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BriaCell Therapeutics has no effect on the direction of Pfizer i.e., Pfizer and BriaCell Therapeutics go up and down completely randomly.

Pair Corralation between Pfizer and BriaCell Therapeutics

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.11 times more return on investment than BriaCell Therapeutics. However, Pfizer Inc is 9.27 times less risky than BriaCell Therapeutics. It trades about -0.04 of its potential returns per unit of risk. BriaCell Therapeutics Corp is currently generating about -0.19 per unit of risk. If you would invest  2,620  in Pfizer Inc on December 4, 2024 and sell it today you would lose (28.00) from holding Pfizer Inc or give up 1.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.48%
Values	Daily Returns

Pfizer Inc  vs.  BriaCell Therapeutics Corp

Pfizer Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Pfizer may actually be approaching a critical reversion point that can send shares even higher in April 2025.

BriaCell Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days BriaCell Therapeutics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Pfizer and BriaCell Therapeutics

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

The idea behind Pfizer Inc and BriaCell Therapeutics Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.