Correlation Between Pfizer and Aqr Small
Can any of the company-specific risk be diversified away by investing in both Pfizer and Aqr Small 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 Aqr Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Aqr Small Cap, you can compare the effects of market volatilities on Pfizer and Aqr Small 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 Aqr Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Aqr Small.
Diversification Opportunities for Pfizer and Aqr Small
Poor diversification
The 3 months correlation between Pfizer and Aqr is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Aqr Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Small Cap 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 Aqr Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Small Cap has no effect on the direction of Pfizer i.e., Pfizer and Aqr Small go up and down completely randomly.
Pair Corralation between Pfizer and Aqr Small
Considering the 90-day investment horizon Pfizer is expected to generate 2.04 times less return on investment than Aqr Small. In addition to that, Pfizer is 1.22 times more volatile than Aqr Small Cap. It trades about 0.06 of its total potential returns per unit of risk. Aqr Small Cap is currently generating about 0.16 per unit of volatility. If you would invest 1,725 in Aqr Small Cap on June 7, 2025 and sell it today you would earn a total of 206.00 from holding Aqr Small Cap or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfizer Inc vs. Aqr Small Cap
Performance |
| Timeline |
| Pfizer Inc |
| Aqr Small Cap |
Pfizer and Aqr Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and Aqr Small
The main advantage of trading using opposite Pfizer and Aqr Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Aqr Small 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 Aqr Small will offset losses from the drop in Aqr Small's long position.| Pfizer vs. AbbVie Inc | Pfizer vs. Merck Company | Pfizer vs. Eli Lilly and | Pfizer vs. Bristol Myers Squibb |
| Aqr Small vs. Aqr Large Cap | Aqr Small vs. Aqr Large Cap | Aqr Small vs. Aqr International Defensive | Aqr Small vs. Aqr International Defensive |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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