Correlation Between Alvotech and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Alvotech and Apogee Enterprises 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 Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alvotech and Apogee Enterprises, you can compare the effects of market volatilities on Alvotech and Apogee Enterprises 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 Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and Apogee Enterprises.
Diversification Opportunities for Alvotech and Apogee Enterprises
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alvotech and Apogee is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises 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 Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Alvotech i.e., Alvotech and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Alvotech and Apogee Enterprises
Given the investment horizon of 90 days Alvotech is expected to under-perform the Apogee Enterprises. But the stock apears to be less risky and, when comparing its historical volatility, Alvotech is 1.07 times less risky than Apogee Enterprises. The stock trades about -0.25 of its potential returns per unit of risk. The Apogee Enterprises is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 7,669 in Apogee Enterprises on August 29, 2024 and sell it today you would earn a total of 795.50 from holding Apogee Enterprises or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alvotech vs. Apogee Enterprises
Performance |
| Timeline |
| Alvotech |
| Apogee Enterprises |
Alvotech and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alvotech and Apogee Enterprises
The main advantage of trading using opposite Alvotech and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech position performs unexpectedly, Apogee Enterprises 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 Apogee Enterprises will offset losses from the drop in Apogee Enterprises' long position.| Alvotech vs. Intracellular Th | Alvotech vs. Catalent | Alvotech vs. Amphastar P | Alvotech vs. Assertio Therapeutics |
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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 Positions Ratings module to 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.
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