Correlation Between Pfizer and CHENIERE

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

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

Diversification Opportunities for Pfizer and CHENIERE

-0.12

Correlation Coefficient

Pfizer  CHENIERE

Good diversification

The 3 months correlation between Pfizer and CHENIERE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and CHENIERE PUS CHRISTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHENIERE PUS CHRISTI 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 CHENIERE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHENIERE PUS CHRISTI has no effect on the direction of Pfizer i.e., Pfizer and CHENIERE go up and down completely randomly.

Pair Corralation between Pfizer and CHENIERE

Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the CHENIERE. In addition to that, Pfizer is 3.94 times more volatile than CHENIERE PUS CHRISTI. It trades about -0.05 of its total potential returns per unit of risk. CHENIERE PUS CHRISTI is currently generating about -0.01 per unit of volatility. If you would invest  9,388  in CHENIERE PUS CHRISTI on December 29, 2024 and sell it today you would lose (14.00) from holding CHENIERE PUS CHRISTI or give up 0.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Pfizer Inc  vs.  CHENIERE PUS CHRISTI

Pfizer Inc

Risk-Adjusted Performance

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 rather sound technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

CHENIERE PUS CHRISTI

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHENIERE PUS CHRISTI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CHENIERE is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pfizer and CHENIERE

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

The idea behind Pfizer Inc and CHENIERE PUS CHRISTI 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.