Correlation Between Pfizer and Vior

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

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

Diversification Opportunities for Pfizer and Vior

0.29

Correlation Coefficient

Pfizer  Vior

Modest diversification

The 3 months correlation between Pfizer and Vior is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Vior Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vior Inc 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 Vior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vior Inc has no effect on the direction of Pfizer i.e., Pfizer and Vior go up and down completely randomly.

Pair Corralation between Pfizer and Vior

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.26 times more return on investment than Vior. However, Pfizer Inc is 3.83 times less risky than Vior. It trades about -0.05 of its potential returns per unit of risk. Vior Inc is currently generating about -0.09 per unit of risk. If you would invest  2,599  in Pfizer Inc on December 28, 2024 and sell it today you would lose (98.00) from holding Pfizer Inc or give up 3.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Pfizer Inc  vs.  Vior Inc

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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Vior Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vior Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Pfizer and Vior

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

The idea behind Pfizer Inc and Vior Inc 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.