Correlation Between PFIZER and Sandstorm Gold
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By analyzing existing cross correlation between PFIZER INC and Sandstorm Gold Ltd, you can compare the effects of market volatilities on PFIZER and Sandstorm Gold 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 Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFIZER and Sandstorm Gold.
Diversification Opportunities for PFIZER and Sandstorm Gold
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PFIZER and Sandstorm is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding PFIZER INC and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of PFIZER i.e., PFIZER and Sandstorm Gold go up and down completely randomly.
Pair Corralation between PFIZER and Sandstorm Gold
Assuming the 90 days trading horizon PFIZER is expected to generate 3.95 times less return on investment than Sandstorm Gold. But when comparing it to its historical volatility, PFIZER INC is 3.91 times less risky than Sandstorm Gold. It trades about 0.03 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 487.00 in Sandstorm Gold Ltd on October 3, 2024 and sell it today you would earn a total of 71.00 from holding Sandstorm Gold Ltd or generate 14.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.41% |
Values | Daily Returns |
PFIZER INC vs. Sandstorm Gold Ltd
Performance |
Timeline |
PFIZER INC |
Sandstorm Gold |
PFIZER and Sandstorm Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PFIZER and Sandstorm Gold
The main advantage of trading using opposite PFIZER and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFIZER position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.PFIZER vs. Gerdau SA ADR | PFIZER vs. NL Industries | PFIZER vs. Flexible Solutions International | PFIZER vs. Axalta Coating Systems |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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