Correlation Between Haymaker Acquisition and Alvotech Warrant

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

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

Diversification Opportunities for Haymaker Acquisition and Alvotech Warrant

0.29

Correlation Coefficient

Haymaker Acquisition  Alvotech Warrant

Modest diversification

The 3 months correlation between Haymaker and Alvotech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Haymaker Acquisition Corp and Alvotech Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech Warrant and Haymaker Acquisition 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 Haymaker Acquisition Corp are associated (or correlated) with Alvotech Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alvotech Warrant has no effect on the direction of Haymaker Acquisition i.e., Haymaker Acquisition and Alvotech Warrant go up and down completely randomly.

Pair Corralation between Haymaker Acquisition and Alvotech Warrant

If you would invest  161.00  in Haymaker Acquisition Corp on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Haymaker Acquisition Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Haymaker Acquisition Corp  vs.  Alvotech Warrant

Haymaker Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haymaker Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Haymaker Acquisition is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Alvotech Warrant

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Alvotech Warrant are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Alvotech Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haymaker Acquisition and Alvotech Warrant

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

The idea behind Haymaker Acquisition Corp and Alvotech Warrant 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.