Correlation Between KROGER and Alvotech

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

By analyzing existing cross correlation between KROGER 515 percent and Alvotech, you can compare the effects of market volatilities on KROGER 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 KROGER with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KROGER and Alvotech.

Diversification Opportunities for KROGER and Alvotech

-0.45

Correlation Coefficient

KROGER  Alvotech

Very good diversification

The 3 months correlation between KROGER and Alvotech is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding KROGER 515 percent and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and KROGER 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 KROGER 515 percent 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 KROGER i.e., KROGER and Alvotech go up and down completely randomly.

Pair Corralation between KROGER and Alvotech

Assuming the 90 days trading horizon KROGER 515 percent is expected to generate 0.43 times more return on investment than Alvotech. However, KROGER 515 percent is 2.34 times less risky than Alvotech. It trades about 0.04 of its potential returns per unit of risk. Alvotech is currently generating about -0.14 per unit of risk. If you would invest  9,197  in KROGER 515 percent on December 29, 2024 and sell it today you would earn a total of  161.00  from holding KROGER 515 percent or generate 1.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	81.97%
Values	Daily Returns

KROGER 515 percent  vs.  Alvotech

KROGER 515 percent

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KROGER 515 percent are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, KROGER is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with KROGER and Alvotech

The main advantage of trading using opposite KROGER and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KROGER 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 KROGER 515 percent 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..