Correlation Analysis Between Pfizer and Merck

This module allows you to analyze existing cross correlation between Pfizer and Merck Company. You can compare the effects of market volatilities on Pfizer and Merck 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 Merck. See also your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Merck.
Horizon     30 Days    Login   to change
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Comparative Performance


Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Pfizer is not utilizing all of its potentials. The prevailing stock price tumult, may contribute to shorter-term losses for the shareholders.

Risk-Adjusted Performance

Over the last 30 days Merck Company has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The prevailing stock price confusion, may contribute to short-horizon losses for the traders.

Pfizer and Merck Volatility Contrast

 Predicted Return Density 

Pfizer Inc  vs.  Merck Company Inc

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Pfizer is expected to generate 0.82 times more return on investment than Merck. However, Pfizer is 1.22 times less risky than Merck. It trades about 0.09 of its potential returns per unit of risk. Merck Company is currently generating about -0.01 per unit of risk. If you would invest  3,518  in Pfizer on October 17, 2019 and sell it today you would earn a total of  210.00  from holding Pfizer or generate 5.97% return on investment over 30 days.

Pair Corralation between Pfizer and Merck

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Pfizer and Merck

Pfizer Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Merck Company Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Merck 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 are associated (or correlated) with Merck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merck has no effect on the direction of Pfizer i.e. Pfizer and Merck go up and down completely randomly.
See also your portfolio center. Please also try Fund Screener module to find activelly-traded funds from around the world traded on over 30 global exchanges.