Correlation Between Jfrog and Tonix Pharmaceuticals

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

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

Diversification Opportunities for Jfrog and Tonix Pharmaceuticals

-0.61

Correlation Coefficient

Jfrog  Tonix Pharmaceuticals

Excellent diversification

The 3 months correlation between Jfrog and Tonix is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and Tonix Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonix Pharmaceuticals and Jfrog 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 Jfrog 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 Jfrog i.e., Jfrog and Tonix Pharmaceuticals go up and down completely randomly.

Pair Corralation between Jfrog and Tonix Pharmaceuticals

Given the investment horizon of 90 days Jfrog is expected to generate 0.17 times more return on investment than Tonix Pharmaceuticals. However, Jfrog is 6.06 times less risky than Tonix Pharmaceuticals. It trades about 0.09 of its potential returns per unit of risk. Tonix Pharmaceuticals Holding is currently generating about -0.04 per unit of risk. If you would invest  3,056  in Jfrog on December 19, 2024 and sell it today you would earn a total of  336.00  from holding Jfrog or generate 10.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Jfrog  vs.  Tonix Pharmaceuticals Holding

Jfrog

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Jfrog reported solid returns over the last few months and may actually be approaching a breakup point.

Tonix Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tonix Pharmaceuticals Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Jfrog and Tonix Pharmaceuticals

The main advantage of trading using opposite Jfrog and Tonix Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog 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 Jfrog 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.