Correlation Between Alignment Healthcare and Lantheus Holdings

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

By analyzing existing cross correlation between Alignment Healthcare LLC and Lantheus Holdings, you can compare the effects of market volatilities on Alignment Healthcare and Lantheus Holdings 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 Alignment Healthcare with a short position of Lantheus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alignment Healthcare and Lantheus Holdings.

Diversification Opportunities for Alignment Healthcare and Lantheus Holdings

-0.81

Correlation Coefficient

Alignment Healthcare  Lantheus Holdings

Pay attention - limited upside

The 3 months correlation between Alignment and Lantheus is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Alignment Healthcare LLC and Lantheus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantheus Holdings and Alignment Healthcare 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 Alignment Healthcare LLC are associated (or correlated) with Lantheus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantheus Holdings has no effect on the direction of Alignment Healthcare i.e., Alignment Healthcare and Lantheus Holdings go up and down completely randomly.

Pair Corralation between Alignment Healthcare and Lantheus Holdings

Given the investment horizon of 90 days Alignment Healthcare LLC is expected to generate 0.63 times more return on investment than Lantheus Holdings. However, Alignment Healthcare LLC is 1.59 times less risky than Lantheus Holdings. It trades about 0.15 of its potential returns per unit of risk. Lantheus Holdings is currently generating about -0.11 per unit of risk. If you would invest  1,314  in Alignment Healthcare LLC on July 5, 2025 and sell it today you would earn a total of  353.50  from holding Alignment Healthcare LLC or generate 26.9% return on investment over 90 days.

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

Alignment Healthcare LLC  vs.  Lantheus Holdings

Alignment Healthcare LLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alignment Healthcare LLC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Alignment Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

Lantheus Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Lantheus Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Alignment Healthcare and Lantheus Holdings

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

The idea behind Alignment Healthcare LLC and Lantheus Holdings 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .