Correlation Between Alvotech and Amphastar
Can any of the company-specific risk be diversified away by investing in both Alvotech and Amphastar 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 Alvotech and Amphastar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alvotech and Amphastar P, you can compare the effects of market volatilities on Alvotech and Amphastar 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 Alvotech with a short position of Amphastar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and Amphastar.
Diversification Opportunities for Alvotech and Amphastar
Weak diversification
The 3 months correlation between Alvotech and Amphastar is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Alvotech 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 Alvotech are associated (or correlated) with Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Alvotech i.e., Alvotech and Amphastar go up and down completely randomly.
Pair Corralation between Alvotech and Amphastar
Given the investment horizon of 90 days Alvotech is expected to under-perform the Amphastar. But the stock apears to be less risky and, when comparing its historical volatility, Alvotech is 1.3 times less risky than Amphastar. The stock trades about -0.06 of its potential returns per unit of risk. The Amphastar P is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,225 in Amphastar P on August 30, 2024 and sell it today you would earn a total of 296.00 from holding Amphastar P or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alvotech vs. Amphastar P
Performance |
| Timeline |
| Alvotech |
| Amphastar P |
Alvotech and Amphastar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alvotech and Amphastar
The main advantage of trading using opposite Alvotech and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech position performs unexpectedly, Amphastar 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 Amphastar will offset losses from the drop in Amphastar's long position.| Alvotech vs. Ikena Oncology | Alvotech vs. Eliem Therapeutics | Alvotech vs. HCW Biologics | Alvotech vs. Tempest Therapeutics |
| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |