Correlation Between Pfizer and Broadmark Realty

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

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

Diversification Opportunities for Pfizer and Broadmark Realty

0.0

Correlation Coefficient

Pfizer  Broadmark Realty

Pay attention - limited upside

The 3 months correlation between Pfizer and Broadmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Broadmark Realty Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadmark Realty Capital 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 Broadmark Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadmark Realty Capital has no effect on the direction of Pfizer i.e., Pfizer and Broadmark Realty go up and down completely randomly.

Pair Corralation between Pfizer and Broadmark Realty

If you would invest (100.00) in Broadmark Realty Capital on December 2, 2024 and sell it today you would earn a total of  100.00  from holding Broadmark Realty Capital or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Pfizer Inc  vs.  Broadmark Realty Capital

Pfizer Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Broadmark Realty Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Broadmark Realty Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Broadmark Realty is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pfizer and Broadmark Realty

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

The idea behind Pfizer Inc and Broadmark Realty Capital 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.