Correlation Between Pfizer and Athena Consumer

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

By analyzing existing cross correlation between Pfizer Inc and Athena Consumer Acquisition, you can compare the effects of market volatilities on Pfizer and Athena Consumer 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 Athena Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Athena Consumer.

Diversification Opportunities for Pfizer and Athena Consumer

-0.27

Correlation Coefficient

Pfizer  Athena Consumer

Very good diversification

The 3 months correlation between Pfizer and Athena is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Athena Consumer Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Consumer Acqu 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 Athena Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Consumer Acqu has no effect on the direction of Pfizer i.e., Pfizer and Athena Consumer go up and down completely randomly.

Pair Corralation between Pfizer and Athena Consumer

If you would invest  2,486  in Pfizer Inc on September 18, 2024 and sell it today you would earn a total of  156.50  from holding Pfizer Inc or generate 6.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Pfizer Inc  vs.  Athena Consumer Acquisition

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. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Athena Consumer Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athena Consumer Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Athena Consumer is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Pfizer and Athena Consumer

The main advantage of trading using opposite Pfizer and Athena Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, Athena Consumer 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 Athena Consumer will offset losses from the drop in Athena Consumer's long position.

The idea behind Pfizer Inc and Athena Consumer Acquisition 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.