Correlation Between Alvotech and Atec
Can any of the company-specific risk be diversified away by investing in both Alvotech and Atec 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 Atec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alvotech and Atec Inc, you can compare the effects of market volatilities on Alvotech and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and Atec.
Diversification Opportunities for Alvotech and Atec
Very weak diversification
The 3 months correlation between Alvotech and Atec is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and Atec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec Inc 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec Inc has no effect on the direction of Alvotech i.e., Alvotech and Atec go up and down completely randomly.
Pair Corralation between Alvotech and Atec
Given the investment horizon of 90 days Alvotech is expected to generate 5.07 times more return on investment than Atec. However, Alvotech is 5.07 times more volatile than Atec Inc. It trades about 0.07 of its potential returns per unit of risk. Atec Inc is currently generating about 0.12 per unit of risk. If you would invest 1,080 in Alvotech on September 12, 2024 and sell it today you would earn a total of 69.00 from holding Alvotech or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Alvotech vs. Atec Inc
Performance |
| Timeline |
| Alvotech |
| Atec Inc |
Alvotech and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alvotech and Atec
The main advantage of trading using opposite Alvotech and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Alvotech vs. Evoke Pharma | Alvotech vs. Dynavax Technologies | Alvotech vs. Amphastar P | Alvotech vs. Lantheus Holdings |
| Atec vs. Franklin Credit Management | Atec vs. PennantPark Floating Rate | Atec vs. Logan Ridge Finance | Atec vs. Waste Management |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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