Correlation Between Alterity Therapeutics and Annovis Bio

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

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

Diversification Opportunities for Alterity Therapeutics and Annovis Bio

-0.73

Correlation Coefficient

Alterity Therapeutics  Annovis Bio

Pay attention - limited upside

The 3 months correlation between Alterity and Annovis is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alterity Therapeutics and Annovis Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annovis Bio and Alterity Therapeutics 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 Alterity Therapeutics are associated (or correlated) with Annovis Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annovis Bio has no effect on the direction of Alterity Therapeutics i.e., Alterity Therapeutics and Annovis Bio go up and down completely randomly.

Pair Corralation between Alterity Therapeutics and Annovis Bio

Given the investment horizon of 90 days Alterity Therapeutics is expected to under-perform the Annovis Bio. But the stock apears to be less risky and, when comparing its historical volatility, Alterity Therapeutics is 1.85 times less risky than Annovis Bio. The stock trades about -0.1 of its potential returns per unit of risk. The Annovis Bio is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  226.00  in Annovis Bio on October 6, 2025 and sell it today you would earn a total of  139.00  from holding Annovis Bio or generate 61.5% return on investment over 90 days.

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

Alterity Therapeutics  vs.  Annovis Bio

Alterity Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Alterity Therapeutics 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 technical indicators remain rather sound which may send shares a bit higher in February 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Annovis Bio

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Annovis Bio are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Annovis Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alterity Therapeutics and Annovis Bio

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

The idea behind Alterity Therapeutics and Annovis Bio 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.