Correlation Between Consultatio and Pfizer

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

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

Diversification Opportunities for Consultatio and Pfizer

-0.32

Correlation Coefficient

Consultatio  Pfizer

Very good diversification

The 3 months correlation between Consultatio and Pfizer is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Consultatio SA and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc and Consultatio 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 Consultatio 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 Consultatio i.e., Consultatio and Pfizer go up and down completely randomly.

Pair Corralation between Consultatio and Pfizer

Assuming the 90 days trading horizon Consultatio is expected to generate 2.17 times less return on investment than Pfizer. In addition to that, Consultatio is 1.15 times more volatile than Pfizer Inc. It trades about 0.07 of its total potential returns per unit of risk. Pfizer Inc is currently generating about 0.18 per unit of volatility. If you would invest  650,000  in Pfizer Inc on April 22, 2025 and sell it today you would earn a total of  142,000  from holding Pfizer Inc or generate 21.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Consultatio SA  vs.  Pfizer Inc

Consultatio SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Consultatio SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Consultatio may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pfizer Inc

Risk-Adjusted Performance

Good

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

Pair Trading with Consultatio and Pfizer

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

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.