Correlation Between Tonix Pharmaceuticals and Jfrog

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

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

Diversification Opportunities for Tonix Pharmaceuticals and Jfrog

-0.61

Correlation Coefficient

Tonix Pharmaceuticals  Jfrog

Excellent diversification

The 3 months correlation between Tonix and Jfrog is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tonix Pharmaceuticals Holding and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog and Tonix Pharmaceuticals 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 Tonix Pharmaceuticals Holding are associated (or correlated) with Jfrog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jfrog has no effect on the direction of Tonix Pharmaceuticals i.e., Tonix Pharmaceuticals and Jfrog go up and down completely randomly.

Pair Corralation between Tonix Pharmaceuticals and Jfrog

Given the investment horizon of 90 days Tonix Pharmaceuticals Holding is expected to under-perform the Jfrog. In addition to that, Tonix Pharmaceuticals is 6.06 times more volatile than Jfrog. It trades about -0.04 of its total potential returns per unit of risk. Jfrog is currently generating about 0.09 per unit of volatility. 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

Tonix Pharmaceuticals Holding  vs.  Jfrog

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.

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.

Pair Trading with Tonix Pharmaceuticals and Jfrog

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

The idea behind Tonix Pharmaceuticals Holding and Jfrog 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.