Correlation Between Regeneron Pharmaceuticals and Alvotech
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Alvotech, you can compare the effects of market volatilities on Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Alvotech.
Diversification Opportunities for Regeneron Pharmaceuticals and Alvotech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regeneron and Alvotech is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Alvotech go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Alvotech
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Alvotech. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 1.85 times less risky than Alvotech. The stock trades about -0.02 of its potential returns per unit of risk. The Alvotech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 917.00 in Alvotech on September 3, 2024 and sell it today you would earn a total of 249.00 from holding Alvotech or generate 27.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Alvotech
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Alvotech |
Regeneron Pharmaceuticals and Alvotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Alvotech
The main advantage of trading using opposite Regeneron Pharmaceuticals and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals 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.| Regeneron Pharmaceuticals vs. DiaMedica Therapeutics | Regeneron Pharmaceuticals vs. Lyra Therapeutics | Regeneron Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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