Correlation Between Mirgor SA and Pfizer

Can any of the company-specific risk be diversified away by investing in both Mirgor 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 Mirgor SA and Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mirgor SA and Pfizer Inc, you can compare the effects of market volatilities on Mirgor 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 Mirgor SA with a short position of Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirgor SA and Pfizer.

Diversification Opportunities for Mirgor SA and Pfizer

-0.92

Correlation Coefficient

Mirgor SA  Pfizer

Pay attention - limited upside

The 3 months correlation between Mirgor and Pfizer is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mirgor SA and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Mirgor 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 Mirgor 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 Mirgor SA i.e., Mirgor SA and Pfizer go up and down completely randomly.

Pair Corralation between Mirgor SA and Pfizer

Assuming the 90 days trading horizon Mirgor SA is expected to generate 1.59 times more return on investment than Pfizer. However, Mirgor SA is 1.59 times more volatile than Pfizer Inc. It trades about 0.13 of its potential returns per unit of risk. Pfizer Inc is currently generating about -0.08 per unit of risk. If you would invest  1,653,400  in Mirgor SA on September 15, 2024 and sell it today you would earn a total of  996,600  from holding Mirgor SA or generate 60.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	99.2%
Values	Daily Returns

Mirgor SA  vs.  Pfizer Inc

Mirgor SA

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mirgor SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mirgor SA sustained solid returns over the last few months and may actually be approaching a breakup point.

Pfizer Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pfizer Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Mirgor SA and Pfizer

The main advantage of trading using opposite Mirgor SA and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirgor 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.

The idea behind Mirgor SA and Pfizer Inc 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.