Correlation Between Scilex Holding and Pfizer
Can any of the company-specific risk be diversified away by investing in both Scilex Holding and Pfizer 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 Scilex Holding and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scilex Holding and Pfizer Inc, you can compare the effects of market volatilities on Scilex Holding and Pfizer 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 Scilex Holding with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scilex Holding and Pfizer.
Diversification Opportunities for Scilex Holding and Pfizer
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scilex and Pfizer is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Scilex Holding and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Scilex Holding 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 Scilex Holding are associated (or correlated) with Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Scilex Holding i.e., Scilex Holding and Pfizer go up and down completely randomly.
Pair Corralation between Scilex Holding and Pfizer
Given the investment horizon of 90 days Scilex Holding is expected to under-perform the Pfizer. In addition to that, Scilex Holding is 4.72 times more volatile than Pfizer Inc. It trades about -0.1 of its total potential returns per unit of risk. Pfizer Inc is currently generating about -0.05 per unit of volatility. If you would invest 2,619 in Pfizer Inc on December 27, 2024 and sell it today you would lose (98.00) from holding Pfizer Inc or give up 3.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Scilex Holding vs. Pfizer Inc
Performance |
Timeline |
Scilex Holding |
Pfizer Inc |
Scilex Holding and Pfizer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scilex Holding and Pfizer
The main advantage of trading using opposite Scilex Holding and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scilex Holding position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.Scilex Holding vs. Emergent Biosolutions | Scilex Holding vs. Bausch Health Companies | Scilex Holding vs. Neurocrine Biosciences | Scilex Holding vs. Teva Pharma Industries |
Pfizer vs. Emergent Biosolutions | Pfizer vs. Bausch Health Companies | Pfizer vs. Neurocrine Biosciences | Pfizer vs. Teva Pharma Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |