Correlation Between Barrick Gold and Alvotech
Can any of the company-specific risk be diversified away by investing in both Barrick Gold 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 Barrick Gold and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrick Gold Corp and Alvotech, you can compare the effects of market volatilities on Barrick Gold 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 Barrick Gold with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Alvotech.
Diversification Opportunities for Barrick Gold and Alvotech
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barrick and Alvotech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Barrick Gold 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 Barrick Gold Corp 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 Barrick Gold i.e., Barrick Gold and Alvotech go up and down completely randomly.
Pair Corralation between Barrick Gold and Alvotech
Given the investment horizon of 90 days Barrick Gold Corp is expected to under-perform the Alvotech. In addition to that, Barrick Gold is 1.18 times more volatile than Alvotech. It trades about -0.28 of its total potential returns per unit of risk. Alvotech is currently generating about -0.2 per unit of volatility. If you would invest 1,299 in Alvotech on August 28, 2024 and sell it today you would lose (99.00) from holding Alvotech or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Alvotech
Performance |
| Timeline |
| Barrick Gold Corp |
| Alvotech |
Barrick Gold and Alvotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Alvotech
The main advantage of trading using opposite Barrick Gold and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold 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.| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
| Alvotech vs. Intracellular Th | Alvotech vs. Catalent | Alvotech vs. Amphastar P | Alvotech vs. Assertio Therapeutics |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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