Correlation Between Pfizer and NEXEN
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By analyzing existing cross correlation between Pfizer Inc and NEXEN INC 64, you can compare the effects of market volatilities on Pfizer and NEXEN 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 NEXEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and NEXEN.
Diversification Opportunities for Pfizer and NEXEN
Pay attention - limited upside
The 3 months correlation between Pfizer and NEXEN is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and NEXEN INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXEN INC 64 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 NEXEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXEN INC 64 has no effect on the direction of Pfizer i.e., Pfizer and NEXEN go up and down completely randomly.
Pair Corralation between Pfizer and NEXEN
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the NEXEN. In addition to that, Pfizer is 2.49 times more volatile than NEXEN INC 64. It trades about -0.04 of its total potential returns per unit of risk. NEXEN INC 64 is currently generating about 0.33 per unit of volatility. If you would invest 11,432 in NEXEN INC 64 on September 15, 2024 and sell it today you would earn a total of 174.00 from holding NEXEN INC 64 or generate 1.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 33.33% |
Values | Daily Returns |
Pfizer Inc vs. NEXEN INC 64
Performance |
Timeline |
Pfizer Inc |
NEXEN INC 64 |
Pfizer and NEXEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pfizer and NEXEN
The main advantage of trading using opposite Pfizer and NEXEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, NEXEN 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 NEXEN will offset losses from the drop in NEXEN'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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