Correlation Between Alvotech and Lewis Clark

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

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

Diversification Opportunities for Alvotech and Lewis Clark

-0.47

Correlation Coefficient

Alvotech  Lewis Clark

Very good diversification

The 3 months correlation between Alvotech and Lewis is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp and Alvotech 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 Alvotech are associated (or correlated) with Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Alvotech i.e., Alvotech and Lewis Clark go up and down completely randomly.

Pair Corralation between Alvotech and Lewis Clark

Given the investment horizon of 90 days Alvotech is expected to generate 1.12 times less return on investment than Lewis Clark. In addition to that, Alvotech is 1.37 times more volatile than Lewis Clark Bancorp. It trades about 0.03 of its total potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.05 per unit of volatility. If you would invest  2,485  in Lewis Clark Bancorp on February 27, 2025 and sell it today you would earn a total of  740.00  from holding Lewis Clark Bancorp or generate 29.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	72.01%
Values	Daily Returns

Alvotech  vs.  Lewis Clark Bancorp

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 very healthy basic indicators, Alvotech is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Lewis Clark Bancorp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lewis Clark Bancorp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile fundamental indicators, Lewis Clark may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Alvotech and Lewis Clark

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

The idea behind Alvotech and Lewis Clark Bancorp 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.