Correlation Between FinVolution and Pfizer
Can any of the company-specific risk be diversified away by investing in both FinVolution 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 FinVolution and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinVolution Group and Pfizer Inc, you can compare the effects of market volatilities on FinVolution 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 FinVolution with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinVolution and Pfizer.
Diversification Opportunities for FinVolution and Pfizer
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FinVolution and Pfizer is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and FinVolution 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 FinVolution Group 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 FinVolution i.e., FinVolution and Pfizer go up and down completely randomly.
Pair Corralation between FinVolution and Pfizer
Given the investment horizon of 90 days FinVolution is expected to generate 4.1 times less return on investment than Pfizer. But when comparing it to its historical volatility, FinVolution Group is 1.28 times less risky than Pfizer. It trades about 0.03 of its potential returns per unit of risk. Pfizer Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,587 in Pfizer Inc on March 22, 2024 and sell it today you would earn a total of 187.00 from holding Pfizer Inc or generate 7.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
FinVolution Group vs. Pfizer Inc
Performance |
Timeline |
FinVolution Group |
Pfizer Inc |
FinVolution and Pfizer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FinVolution and Pfizer
The main advantage of trading using opposite FinVolution and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinVolution 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.FinVolution vs. Nextplat Corp | FinVolution vs. Mizuho Financial Group | FinVolution vs. Gfl Environmental Holdings | FinVolution vs. G1 Therapeutics |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Transaction History View history of all your transactions and understand their impact on performance |