Correlation Between Pfizer and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Pfizer and Manning Napier 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 Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Manning Napier Credit, you can compare the effects of market volatilities on Pfizer and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Manning Napier.
Diversification Opportunities for Pfizer and Manning Napier
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pfizer and Manning is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Manning Napier Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Credit 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Credit has no effect on the direction of Pfizer i.e., Pfizer and Manning Napier go up and down completely randomly.
Pair Corralation between Pfizer and Manning Napier
Considering the 90-day investment horizon Pfizer Inc is expected to generate 7.5 times more return on investment than Manning Napier. However, Pfizer is 7.5 times more volatile than Manning Napier Credit. It trades about 0.04 of its potential returns per unit of risk. Manning Napier Credit is currently generating about 0.09 per unit of risk. If you would invest 2,355 in Pfizer Inc on April 30, 2025 and sell it today you would earn a total of 75.00 from holding Pfizer Inc or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Pfizer Inc vs. Manning Napier Credit
Performance |
| Timeline |
| Pfizer Inc |
| Manning Napier Credit |
Pfizer and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Manning Napier
The main advantage of trading using opposite Pfizer and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Pfizer vs. AbbVie Inc | Pfizer vs. Merck Company | Pfizer vs. Eli Lilly and | Pfizer vs. Bristol Myers Squibb |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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