Correlation Between Intrusion and Tonix Pharmaceuticals

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

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

Diversification Opportunities for Intrusion and Tonix Pharmaceuticals

0.24

Correlation Coefficient

Intrusion  Tonix Pharmaceuticals

Modest diversification

The 3 months correlation between Intrusion and Tonix is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Intrusion and Tonix Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonix Pharmaceuticals and Intrusion 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 Intrusion 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 Intrusion i.e., Intrusion and Tonix Pharmaceuticals go up and down completely randomly.

Pair Corralation between Intrusion and Tonix Pharmaceuticals

Given the investment horizon of 90 days Intrusion is expected to generate 2.08 times more return on investment than Tonix Pharmaceuticals. However, Intrusion is 2.08 times more volatile than Tonix Pharmaceuticals Holding. It trades about 0.02 of its potential returns per unit of risk. Tonix Pharmaceuticals Holding is currently generating about -0.07 per unit of risk. If you would invest  2,540  in Intrusion on October 24, 2024 and sell it today you would lose (2,322) from holding Intrusion or give up 91.42% of portfolio value over 90 days.

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

Intrusion  vs.  Tonix Pharmaceuticals Holding

Intrusion

Risk-Adjusted Performance

10 of 100

OK

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

Tonix Pharmaceuticals

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tonix Pharmaceuticals Holding are ranked lower than 9 (%) 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 Intrusion and Tonix Pharmaceuticals

The main advantage of trading using opposite Intrusion and Tonix Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrusion 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 Intrusion 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.