Correlation Between Annovis Bio and Bellus Health

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

Diversification Opportunities for Annovis Bio and Bellus Health

-0.19
  Correlation Coefficient

Good diversification

The 24 months correlation between Annovis and Bellus is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Annovis Bio and Bellus Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellus Health 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 Bellus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellus Health has no effect on the direction of Annovis Bio i.e., Annovis Bio and Bellus Health go up and down completely randomly.

Pair Corralation between Annovis Bio and Bellus Health

Given the investment horizon of 90 days Annovis Bio is expected to generate 2.52 times more return on investment than Bellus Health. However, Annovis Bio is 2.52 times more volatile than Bellus Health. It trades about 0.1 of its potential returns per unit of risk. Bellus Health is currently generating about 0.02 per unit of risk. If you would invest  1,013  in Annovis Bio on March 28, 2022 and sell it today you would earn a total of  114.00  from holding Annovis Bio or generate 11.25% return on investment over 90 days.
Time Period24 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Annovis Bio  vs.  Bellus Health

 Performance (%) 
      Timeline 
Annovis Bio 
Annovis Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Annovis Bio are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Annovis Bio reported solid returns over the last few months and may actually be approaching a breakup point.

Annovis Price Channel

Bellus Health 
Bellus Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bellus Health are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent essential indicators, Bellus Health unveiled solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Last Split Factor
277:1000
Dividend Date
2019-08-19
Last Split Date
2019-08-19

Bellus Price Channel

Annovis Bio and Bellus Health Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Annovis Bio and Bellus Health

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

Annovis Bio

Pair trading matchups for Annovis Bio

The idea behind Annovis Bio and Bellus Health 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.

Bellus Health

Pair trading matchups for Bellus Health

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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