Correlation Between Pfizer and Clifton Mining
Can any of the company-specific risk be diversified away by investing in both Pfizer and Clifton Mining 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 Clifton Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Clifton Mining Co, you can compare the effects of market volatilities on Pfizer and Clifton Mining 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 Clifton Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Clifton Mining.
Diversification Opportunities for Pfizer and Clifton Mining
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pfizer and Clifton is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Clifton Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clifton Mining 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 Clifton Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clifton Mining has no effect on the direction of Pfizer i.e., Pfizer and Clifton Mining go up and down completely randomly.
Pair Corralation between Pfizer and Clifton Mining
Considering the 90-day investment horizon Pfizer is expected to generate 58.3 times less return on investment than Clifton Mining. But when comparing it to its historical volatility, Pfizer Inc is 5.63 times less risky than Clifton Mining. It trades about 0.01 of its potential returns per unit of risk. Clifton Mining Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Clifton Mining Co on July 13, 2025 and sell it today you would earn a total of 0.00 from holding Clifton Mining Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. Clifton Mining Co
Performance |
| Timeline |
| Pfizer Inc |
| Clifton Mining |
Pfizer and Clifton Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Clifton Mining
The main advantage of trading using opposite Pfizer and Clifton Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Clifton Mining 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 Clifton Mining will offset losses from the drop in Clifton Mining's long position.The idea behind Pfizer Inc and Clifton Mining Co 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.| Clifton Mining vs. Alien Metals | Clifton Mining vs. Adamera Minerals Corp | Clifton Mining vs. iMetal Resources | Clifton Mining vs. Mantaro Silver Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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