Correlation Between Tonix Pharmaceuticals and Intrusion

Can any of the company-specific risk be diversified away by investing in both Tonix Pharmaceuticals and Intrusion 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 Intrusion 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 Intrusion, you can compare the effects of market volatilities on Tonix Pharmaceuticals and Intrusion 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 Intrusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonix Pharmaceuticals and Intrusion.

Diversification Opportunities for Tonix Pharmaceuticals and Intrusion

0.1

Correlation Coefficient

Tonix Pharmaceuticals  Intrusion

Average diversification

The 3 months correlation between Tonix and Intrusion is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Tonix Pharmaceuticals Holding and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion 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 Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of Tonix Pharmaceuticals i.e., Tonix Pharmaceuticals and Intrusion go up and down completely randomly.

Pair Corralation between Tonix Pharmaceuticals and Intrusion

Given the investment horizon of 90 days Tonix Pharmaceuticals Holding is expected to under-perform the Intrusion. But the stock apears to be less risky and, when comparing its historical volatility, Tonix Pharmaceuticals Holding is 3.93 times less risky than Intrusion. The stock trades about -0.02 of its potential returns per unit of risk. The Intrusion is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  36.00  in Intrusion on December 21, 2024 and sell it today you would earn a total of  93.00  from holding Intrusion or generate 258.33% return on investment over 90 days.

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

Tonix Pharmaceuticals Holding  vs.  Intrusion

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.

Intrusion

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 11 (%) 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.

Pair Trading with Tonix Pharmaceuticals and Intrusion

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

The idea behind Tonix Pharmaceuticals Holding and Intrusion 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..