Correlation Between Fly Play and Alvotech
Can any of the company-specific risk be diversified away by investing in both Fly Play 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 Fly Play and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fly Play hf and Alvotech, you can compare the effects of market volatilities on Fly Play 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 Fly Play with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fly Play and Alvotech.
Diversification Opportunities for Fly Play and Alvotech
Very good diversification
The 3 months correlation between Fly and Alvotech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fly Play hf and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Fly Play 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 Fly Play hf 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 Fly Play i.e., Fly Play and Alvotech go up and down completely randomly.
Pair Corralation between Fly Play and Alvotech
Assuming the 90 days trading horizon Fly Play hf is expected to generate 2.04 times more return on investment than Alvotech. However, Fly Play is 2.04 times more volatile than Alvotech. It trades about -0.08 of its potential returns per unit of risk. Alvotech is currently generating about -0.35 per unit of risk. If you would invest 107.00 in Fly Play hf on September 1, 2024 and sell it today you would lose (6.00) from holding Fly Play hf or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fly Play hf vs. Alvotech
Performance |
| Timeline |
| Fly Play hf |
| Alvotech |
Fly Play and Alvotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fly Play and Alvotech
The main advantage of trading using opposite Fly Play and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fly Play 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.| Fly Play vs. slandsbanki hf | Fly Play vs. Icelandair Group hf | Fly Play vs. Marel hf | Fly Play vs. Arion banki hf |
| Alvotech vs. Kvika banki hf | Alvotech vs. Icelandair Group hf | Alvotech vs. Iceland Seafood International |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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