Correlation Between Dynavax Technologies and Alvotech

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Can any of the company-specific risk be diversified away by investing in both Dynavax Technologies 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 Dynavax Technologies and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynavax Technologies and Alvotech, you can compare the effects of market volatilities on Dynavax Technologies 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 Dynavax Technologies with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynavax Technologies and Alvotech.

Diversification Opportunities for Dynavax Technologies and Alvotech

-0.78
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Dynavax and Alvotech is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dynavax Technologies and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Dynavax Technologies 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 Dynavax Technologies 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 Dynavax Technologies i.e., Dynavax Technologies and Alvotech go up and down completely randomly.

Pair Corralation between Dynavax Technologies and Alvotech

Given the investment horizon of 90 days Dynavax Technologies is expected to generate 0.36 times more return on investment than Alvotech. However, Dynavax Technologies is 2.78 times less risky than Alvotech. It trades about 0.13 of its potential returns per unit of risk. Alvotech is currently generating about -0.1 per unit of risk. If you would invest  991.00  in Dynavax Technologies on August 31, 2025 and sell it today you would earn a total of  152.00  from holding Dynavax Technologies or generate 15.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Dynavax Technologies  vs.  Alvotech

 Performance 
       Timeline  
Dynavax Technologies 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dynavax Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Dynavax Technologies showed solid returns over the last few months and may actually be approaching a breakup point.
Alvotech 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Alvotech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Dynavax Technologies and Alvotech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dynavax Technologies and Alvotech

The main advantage of trading using opposite Dynavax Technologies and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynavax Technologies 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 Dynavax Technologies 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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