Correlation Between Pfizer and Mfs Technology
Can any of the company-specific risk be diversified away by investing in both Pfizer and Mfs Technology 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 Mfs Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Mfs Technology Fund, you can compare the effects of market volatilities on Pfizer and Mfs Technology 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 Mfs Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Mfs Technology.
Diversification Opportunities for Pfizer and Mfs Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pfizer and Mfs is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Mfs Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Technology 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 Mfs Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Technology has no effect on the direction of Pfizer i.e., Pfizer and Mfs Technology go up and down completely randomly.
Pair Corralation between Pfizer and Mfs Technology
Considering the 90-day investment horizon Pfizer is expected to generate 2.05 times less return on investment than Mfs Technology. In addition to that, Pfizer is 1.37 times more volatile than Mfs Technology Fund. It trades about 0.14 of its total potential returns per unit of risk. Mfs Technology Fund is currently generating about 0.4 per unit of volatility. If you would invest 3,458 in Mfs Technology Fund on April 18, 2025 and sell it today you would earn a total of 1,069 from holding Mfs Technology Fund or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
Pfizer Inc vs. Mfs Technology Fund
Performance |
| Timeline |
| Pfizer Inc |
| Mfs Technology |
Pfizer and Mfs Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Mfs Technology
The main advantage of trading using opposite Pfizer and Mfs Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Mfs Technology 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 Mfs Technology will offset losses from the drop in Mfs Technology's long position.| Pfizer vs. AbbVie Inc | Pfizer vs. Merck Company | Pfizer vs. Eli Lilly and | Pfizer vs. Bristol Myers Squibb |
| Mfs Technology vs. Pace Global Real | Mfs Technology vs. Qs Global Equity | Mfs Technology vs. Barings Global Floating | Mfs Technology vs. Ab Global Risk |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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