Correlation Between ACST Old and Tonix Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both ACST Old and Tonix Pharmaceuticals 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 ACST Old and Tonix Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ACST Old and Tonix Pharmaceuticals Holding, you can compare the effects of market volatilities on ACST Old and Tonix Pharmaceuticals 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 ACST Old with a short position of Tonix Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACST Old and Tonix Pharmaceuticals.

Diversification Opportunities for ACST Old and Tonix Pharmaceuticals

0.0

Correlation Coefficient

ACST Old  Tonix Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between ACST and Tonix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACST Old and Tonix Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonix Pharmaceuticals and ACST Old 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 ACST Old are associated (or correlated) with Tonix Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonix Pharmaceuticals has no effect on the direction of ACST Old i.e., ACST Old and Tonix Pharmaceuticals go up and down completely randomly.

Pair Corralation between ACST Old and Tonix Pharmaceuticals

If you would invest  3,601  in Tonix Pharmaceuticals Holding on December 28, 2024 and sell it today you would lose (725.00) from holding Tonix Pharmaceuticals Holding or give up 20.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ACST Old  vs.  Tonix Pharmaceuticals Holding

ACST Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days ACST Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ACST Old is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Tonix Pharmaceuticals

Risk-Adjusted Performance

Insignificant

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

Pair Trading with ACST Old and Tonix Pharmaceuticals

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

The idea behind ACST Old and Tonix Pharmaceuticals Holding 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.