Correlation Between Alvotech and SharkNinja,

Can any of the company-specific risk be diversified away by investing in both Alvotech and SharkNinja, 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 Alvotech and SharkNinja, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alvotech and SharkNinja,, you can compare the effects of market volatilities on Alvotech and SharkNinja, 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 Alvotech with a short position of SharkNinja,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and SharkNinja,.

Diversification Opportunities for Alvotech and SharkNinja,

0.1

Correlation Coefficient

Alvotech  SharkNinja,

Average diversification

The 3 months correlation between Alvotech and SharkNinja, is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Alvotech 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 Alvotech are associated (or correlated) with SharkNinja,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SharkNinja, has no effect on the direction of Alvotech i.e., Alvotech and SharkNinja, go up and down completely randomly.

Pair Corralation between Alvotech and SharkNinja,

Given the investment horizon of 90 days Alvotech is expected to generate 0.51 times more return on investment than SharkNinja,. However, Alvotech is 1.96 times less risky than SharkNinja,. It trades about 0.07 of its potential returns per unit of risk. SharkNinja, is currently generating about -0.04 per unit of risk. If you would invest  1,190  in Alvotech on September 29, 2024 and sell it today you would earn a total of  77.00  from holding Alvotech or generate 6.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alvotech  vs.  SharkNinja,

Alvotech

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alvotech are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Alvotech may actually be approaching a critical reversion point that can send shares even higher in January 2025.

SharkNinja,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SharkNinja, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Alvotech and SharkNinja,

The main advantage of trading using opposite Alvotech and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech position performs unexpectedly, SharkNinja, 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 SharkNinja, will offset losses from the drop in SharkNinja,'s long position.

The idea behind Alvotech and SharkNinja, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.