Correlation Between Pfizer and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Pfizer and Emerging Markets 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 Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Emerging Markets Portfolio, you can compare the effects of market volatilities on Pfizer and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Emerging Markets.
Diversification Opportunities for Pfizer and Emerging Markets
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pfizer and Emerging is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Emerging Markets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Por 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Por has no effect on the direction of Pfizer i.e., Pfizer and Emerging Markets go up and down completely randomly.
Pair Corralation between Pfizer and Emerging Markets
Considering the 90-day investment horizon Pfizer Inc is expected to generate 2.15 times more return on investment than Emerging Markets. However, Pfizer is 2.15 times more volatile than Emerging Markets Portfolio. It trades about 0.14 of its potential returns per unit of risk. Emerging Markets Portfolio is currently generating about 0.28 per unit of risk. If you would invest 2,197 in Pfizer Inc on April 23, 2025 and sell it today you would earn a total of 317.00 from holding Pfizer Inc or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. Emerging Markets Portfolio
Performance |
| Timeline |
| Pfizer Inc |
| Emerging Markets Por |
Pfizer and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Emerging Markets
The main advantage of trading using opposite Pfizer and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Pfizer vs. Inhibrx Biosciences, | Pfizer vs. Protagonist Therapeutics | Pfizer vs. Larimar Therapeutics | Pfizer vs. Viridian Therapeutics |
| Emerging Markets vs. Ab Bond Inflation | Emerging Markets vs. Bbh Intermediate Municipal | Emerging Markets vs. Siit High Yield | Emerging Markets vs. Versatile Bond Portfolio |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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