Correlation Between Ihuman and Alvotech
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Alvotech, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Alvotech.
Diversification Opportunities for Ihuman and Alvotech
Very good diversification
The 3 months correlation between Ihuman and Alvotech is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Alvotech go up and down completely randomly.
Pair Corralation between Ihuman and Alvotech
Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 1.5 times more return on investment than Alvotech. However, Ihuman is 1.5 times more volatile than Alvotech. It trades about 0.03 of its potential returns per unit of risk. Alvotech is currently generating about -0.05 per unit of risk. If you would invest 180.00 in Ihuman Inc on December 4, 2024 and sell it today you would earn a total of 26.00 from holding Ihuman Inc or generate 14.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ihuman Inc vs. Alvotech
Performance |
Timeline |
Ihuman Inc |
Alvotech |
Ihuman and Alvotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ihuman and Alvotech
The main advantage of trading using opposite Ihuman and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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