Correlation Between Inter Parfums and Pfizer
Can any of the company-specific risk be diversified away by investing in both Inter Parfums 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 Inter Parfums and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and Pfizer Inc, you can compare the effects of market volatilities on Inter Parfums 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 Inter Parfums with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and Pfizer.
Diversification Opportunities for Inter Parfums and Pfizer
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inter and Pfizer is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Inter Parfums 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 Inter Parfums 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 Inter Parfums i.e., Inter Parfums and Pfizer go up and down completely randomly.
Pair Corralation between Inter Parfums and Pfizer
Given the investment horizon of 90 days Inter Parfums is expected to under-perform the Pfizer. But the stock apears to be less risky and, when comparing its historical volatility, Inter Parfums is 1.05 times less risky than Pfizer. The stock trades about -0.22 of its potential returns per unit of risk. The Pfizer Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,431 in Pfizer Inc on May 27, 2025 and sell it today you would earn a total of 83.00 from holding Pfizer Inc or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Parfums vs. Pfizer Inc
Performance |
| Timeline |
| Inter Parfums |
| Pfizer Inc |
Inter Parfums and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Parfums and Pfizer
The main advantage of trading using opposite Inter Parfums and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums 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.| Inter Parfums vs. J J Snack | Inter Parfums vs. John B Sanfilippo | Inter Parfums vs. Innospec | Inter Parfums vs. Independent Bank |
| Pfizer vs. AbbVie Inc | Pfizer vs. Merck Company | Pfizer vs. Eli Lilly and | Pfizer vs. Bristol Myers Squibb |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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