Correlation Between Neogen and Alvotech
Can any of the company-specific risk be diversified away by investing in both Neogen 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 Neogen and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and Alvotech, you can compare the effects of market volatilities on Neogen 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 Neogen with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and Alvotech.
Diversification Opportunities for Neogen and Alvotech
Excellent diversification
The 3 months correlation between Neogen and Alvotech is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Neogen 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 Neogen 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 Neogen i.e., Neogen and Alvotech go up and down completely randomly.
Pair Corralation between Neogen and Alvotech
Given the investment horizon of 90 days Neogen is expected to generate 1.46 times more return on investment than Alvotech. However, Neogen is 1.46 times more volatile than Alvotech. It trades about 0.17 of its potential returns per unit of risk. Alvotech is currently generating about -0.2 per unit of risk. If you would invest 1,405 in Neogen on August 28, 2024 and sell it today you would earn a total of 126.00 from holding Neogen or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neogen vs. Alvotech
Performance |
| Timeline |
| Neogen |
| Alvotech |
Neogen and Alvotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and Alvotech
The main advantage of trading using opposite Neogen and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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.| Neogen vs. Heartbeam | Neogen vs. EUDA Health Holdings | Neogen vs. Nutex Health | Neogen vs. Healthcare Triangle |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |