Correlation Between Pfizer and High-yield Municipal

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Pfizer and High-yield Municipal 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 High-yield Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and High Yield Municipal Fund, you can compare the effects of market volatilities on Pfizer and High-yield Municipal 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 High-yield Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and High-yield Municipal.

Diversification Opportunities for Pfizer and High-yield Municipal

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Pfizer and High-yield is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and HIGH-YIELD MUNICIPAL FUND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High-yield Municipal Fund 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 High-yield Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High-yield Municipal Fund has no effect on the direction of Pfizer i.e., Pfizer and High-yield Municipal go up and down completely randomly.

Pair Corralation between Pfizer and High-yield Municipal

Considering the 90-day investment horizon Pfizer Inc is expected to generate 10.94 times more return on investment than High-yield Municipal. However, Pfizer is 10.94 times more volatile than High Yield Municipal Fund. It trades about 0.1 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.24 per unit of risk. If you would invest  2,689  in Pfizer Inc on December 29, 2023 and sell it today you would earn a total of  89.00  from holding Pfizer Inc or generate 3.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Pfizer Inc  vs.  HIGH-YIELD MUNICIPAL FUND

 Performance 
       Timeline  
Pfizer Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Pfizer Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
High-yield Municipal Fund 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in High Yield Municipal Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, High-yield Municipal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pfizer and High-yield Municipal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pfizer and High-yield Municipal

The main advantage of trading using opposite Pfizer and High-yield Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, High-yield Municipal 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 High-yield Municipal will offset losses from the drop in High-yield Municipal's long position.
The idea behind Pfizer Inc and High Yield Municipal Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Global Correlations
Find global opportunities by holding instruments from different markets