Correlation Between Pfizer and Thunder Bridge

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

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

Diversification Opportunities for Pfizer and Thunder Bridge

-0.65

Correlation Coefficient

Pfizer  Thunder Bridge

Excellent diversification

The 3 months correlation between Pfizer and Thunder is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Pfizer i.e., Pfizer and Thunder Bridge go up and down completely randomly.

Pair Corralation between Pfizer and Thunder Bridge

If you would invest  1,048  in Thunder Bridge Capital on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Thunder Bridge Capital or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.54%
Values	Daily Returns

Pfizer Inc  vs.  Thunder Bridge Capital

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Thunder Bridge Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thunder Bridge Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Thunder Bridge is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Pfizer and Thunder Bridge

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

The idea behind Pfizer Inc and Thunder Bridge 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.

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.