Correlation Between Alvotech and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Alvotech and Genmab AS 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 Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alvotech and Genmab AS, you can compare the effects of market volatilities on Alvotech and Genmab AS 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 Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and Genmab AS.
Diversification Opportunities for Alvotech and Genmab AS
Excellent diversification
The 3 months correlation between Alvotech and Genmab is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS 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 Genmab AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genmab AS has no effect on the direction of Alvotech i.e., Alvotech and Genmab AS go up and down completely randomly.
Pair Corralation between Alvotech and Genmab AS
Given the investment horizon of 90 days Alvotech is expected to generate 1.55 times more return on investment than Genmab AS. However, Alvotech is 1.55 times more volatile than Genmab AS. It trades about 0.01 of its potential returns per unit of risk. Genmab AS is currently generating about -0.06 per unit of risk. If you would invest 1,278 in Alvotech on August 27, 2024 and sell it today you would lose (79.00) from holding Alvotech or give up 6.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alvotech vs. Genmab AS
Performance |
| Timeline |
| Alvotech |
| Genmab AS |
Alvotech and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alvotech and Genmab AS
The main advantage of trading using opposite Alvotech and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech position performs unexpectedly, Genmab AS 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 Genmab AS will offset losses from the drop in Genmab AS's long position.| Alvotech vs. Intracellular Th | Alvotech vs. Catalent | Alvotech vs. Amphastar P | Alvotech vs. Assertio Therapeutics |
| Genmab AS vs. Eliem Therapeutics | Genmab AS vs. HCW Biologics | Genmab AS vs. Scpharmaceuticals | Genmab AS vs. Milestone Pharmaceuticals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |