Correlation Between Academy Sports and Alvotech
Can any of the company-specific risk be diversified away by investing in both Academy Sports and Alvotech 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 Academy Sports and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Academy Sports Outdoors and Alvotech, you can compare the effects of market volatilities on Academy Sports and Alvotech 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 Academy Sports with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Alvotech.
Diversification Opportunities for Academy Sports and Alvotech
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Academy and Alvotech is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Academy Sports 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 Academy Sports Outdoors are associated (or correlated) with Alvotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alvotech has no effect on the direction of Academy Sports i.e., Academy Sports and Alvotech go up and down completely randomly.
Pair Corralation between Academy Sports and Alvotech
Considering the 90-day investment horizon Academy Sports is expected to generate 1.58 times less return on investment than Alvotech. But when comparing it to its historical volatility, Academy Sports Outdoors is 1.04 times less risky than Alvotech. It trades about 0.03 of its potential returns per unit of risk. Alvotech is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 937.00 in Alvotech on September 4, 2024 and sell it today you would earn a total of 229.00 from holding Alvotech or generate 24.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Alvotech
Performance |
| Timeline |
| Academy Sports Outdoors |
| Alvotech |
Academy Sports and Alvotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Alvotech
The main advantage of trading using opposite Academy Sports and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, Alvotech 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 Alvotech will offset losses from the drop in Alvotech's long position.| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
| Alvotech vs. Candel Therapeutics | Alvotech vs. Cingulate Warrants | Alvotech vs. Unicycive Therapeutics | Alvotech vs. Cardio Diagnostics Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |