Correlation Between Golden Heaven and Alvotech
Can any of the company-specific risk be diversified away by investing in both Golden Heaven 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 Golden Heaven and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Heaven Group and Alvotech, you can compare the effects of market volatilities on Golden Heaven 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 Golden Heaven with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Heaven and Alvotech.
Diversification Opportunities for Golden Heaven and Alvotech
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Golden and Alvotech is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Golden Heaven Group and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Golden Heaven 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 Golden Heaven Group 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 Golden Heaven i.e., Golden Heaven and Alvotech go up and down completely randomly.
Pair Corralation between Golden Heaven and Alvotech
Given the investment horizon of 90 days Golden Heaven Group is expected to generate 6.02 times more return on investment than Alvotech. However, Golden Heaven is 6.02 times more volatile than Alvotech. It trades about 0.14 of its potential returns per unit of risk. Alvotech is currently generating about -0.18 per unit of risk. If you would invest 209.00 in Golden Heaven Group on December 28, 2024 and sell it today you would earn a total of 247.00 from holding Golden Heaven Group or generate 118.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Golden Heaven Group vs. Alvotech
Performance |
Timeline |
Golden Heaven Group |
Alvotech |
Golden Heaven and Alvotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Golden Heaven and Alvotech
The main advantage of trading using opposite Golden Heaven and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Heaven 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.Golden Heaven vs. Vacasa Inc | Golden Heaven vs. SLR Investment Corp | Golden Heaven vs. Asure Software | Golden Heaven vs. Zhihu Inc ADR |
Alvotech vs. Intracellular Th | Alvotech vs. Amphastar P | Alvotech vs. Assertio Therapeutics | Alvotech vs. ANI Pharmaceuticals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |