Correlation Between Annovis Bio and Anixa Biosciences

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

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

Diversification Opportunities for Annovis Bio and Anixa Biosciences

0.64

Correlation Coefficient

Annovis Bio  Anixa Biosciences

Poor diversification

The 3 months correlation between Annovis and Anixa is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Annovis Bio and Anixa Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anixa Biosciences and Annovis Bio 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 Annovis Bio are associated (or correlated) with Anixa Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anixa Biosciences has no effect on the direction of Annovis Bio i.e., Annovis Bio and Anixa Biosciences go up and down completely randomly.

Pair Corralation between Annovis Bio and Anixa Biosciences

Given the investment horizon of 90 days Annovis Bio is expected to generate 1.61 times more return on investment than Anixa Biosciences. However, Annovis Bio is 1.61 times more volatile than Anixa Biosciences. It trades about 0.16 of its potential returns per unit of risk. Anixa Biosciences is currently generating about 0.1 per unit of risk. If you would invest  144.00  in Annovis Bio on May 6, 2025 and sell it today you would earn a total of  107.00  from holding Annovis Bio or generate 74.31% return on investment over 90 days.

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

Annovis Bio  vs.  Anixa Biosciences

Annovis Bio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Annovis Bio are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Annovis Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Anixa Biosciences

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anixa Biosciences are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, Anixa Biosciences showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Annovis Bio and Anixa Biosciences

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

The idea behind Annovis Bio and Anixa Biosciences 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.