Correlation Between Alvotech and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Alvotech and FTAI Aviation 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 FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alvotech and FTAI Aviation Ltd, you can compare the effects of market volatilities on Alvotech and FTAI Aviation 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 FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and FTAI Aviation.
Diversification Opportunities for Alvotech and FTAI Aviation
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alvotech and FTAI is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation 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 FTAI Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Aviation has no effect on the direction of Alvotech i.e., Alvotech and FTAI Aviation go up and down completely randomly.
Pair Corralation between Alvotech and FTAI Aviation
Given the investment horizon of 90 days Alvotech is expected to under-perform the FTAI Aviation. In addition to that, Alvotech is 1.85 times more volatile than FTAI Aviation Ltd. It trades about -0.09 of its total potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.06 per unit of volatility. If you would invest 2,670 in FTAI Aviation Ltd on August 24, 2024 and sell it today you would earn a total of 28.00 from holding FTAI Aviation Ltd or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alvotech vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Alvotech |
| FTAI Aviation |
Alvotech and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alvotech and FTAI Aviation
The main advantage of trading using opposite Alvotech and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech position performs unexpectedly, FTAI Aviation 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 FTAI Aviation will offset losses from the drop in FTAI Aviation's long position.| Alvotech vs. Intracellular Th | Alvotech vs. Catalent | Alvotech vs. Amphastar P | Alvotech vs. Assertio Therapeutics |
| FTAI Aviation vs. Antero Midstream Partners | FTAI Aviation vs. BRP Inc | FTAI Aviation vs. Canlan Ice Sports | FTAI Aviation vs. Alliant Energy Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |