Correlation Between Kering SA and Pfizer
Can any of the company-specific risk be diversified away by investing in both Kering SA and Pfizer 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 Kering SA and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kering SA and Pfizer Inc, you can compare the effects of market volatilities on Kering SA and Pfizer 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 Kering SA with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kering SA and Pfizer.
Diversification Opportunities for Kering SA and Pfizer
Poor diversification
The 3 months correlation between Kering and Pfizer is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kering SA and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Kering SA 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 Kering SA are associated (or correlated) with Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Kering SA i.e., Kering SA and Pfizer go up and down completely randomly.
Pair Corralation between Kering SA and Pfizer
Assuming the 90 days horizon Kering SA is expected to generate 2.03 times more return on investment than Pfizer. However, Kering SA is 2.03 times more volatile than Pfizer Inc. It trades about 0.2 of its potential returns per unit of risk. Pfizer Inc is currently generating about 0.1 per unit of risk. If you would invest 1,996 in Kering SA on June 5, 2025 and sell it today you would earn a total of 792.00 from holding Kering SA or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kering SA vs. Pfizer Inc
Performance |
| Timeline |
| Kering SA |
| Pfizer Inc |
Kering SA and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kering SA and Pfizer
The main advantage of trading using opposite Kering SA and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kering SA position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.| Kering SA vs. Burberry Group Plc | Kering SA vs. Swatch Group AG | Kering SA vs. Prada Spa PK | Kering SA vs. Compagnie Financire Richemont |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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