Correlation Between Skel Fjrfestingaflag and Alvotech

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

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

Diversification Opportunities for Skel Fjrfestingaflag and Alvotech

0.65

Correlation Coefficient

Skel Fjrfestingaflag  Alvotech

Poor diversification

The 3 months correlation between Skel and Alvotech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Skel fjrfestingaflag hf and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Skel Fjrfestingaflag 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 Skel fjrfestingaflag hf 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 Skel Fjrfestingaflag i.e., Skel Fjrfestingaflag and Alvotech go up and down completely randomly.

Pair Corralation between Skel Fjrfestingaflag and Alvotech

Assuming the 90 days trading horizon Skel fjrfestingaflag hf is expected to generate 0.84 times more return on investment than Alvotech. However, Skel fjrfestingaflag hf is 1.2 times less risky than Alvotech. It trades about 0.13 of its potential returns per unit of risk. Alvotech is currently generating about 0.01 per unit of risk. If you would invest  1,720  in Skel fjrfestingaflag hf on December 4, 2024 and sell it today you would earn a total of  210.00  from holding Skel fjrfestingaflag hf or generate 12.21% return on investment over 90 days.

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

Skel fjrfestingaflag hf  vs.  Alvotech

Skel fjrfestingaflag

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Skel fjrfestingaflag hf are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Skel Fjrfestingaflag exhibited solid returns over the last few months and may actually be approaching a breakup point.

Alvotech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alvotech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Alvotech is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Skel Fjrfestingaflag and Alvotech

The main advantage of trading using opposite Skel Fjrfestingaflag and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skel Fjrfestingaflag 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.

The idea behind Skel fjrfestingaflag hf and Alvotech 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 CEOs Directory module to screen CEOs from public companies around the world.