Correlation Between Tonix Pharmaceuticals and Vaxart

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

Diversification Opportunities for Tonix Pharmaceuticals and Vaxart

-0.47

Correlation Coefficient

Tonix Pharmaceuticals  Vaxart

Very good diversification

The 3 months correlation between Tonix and Vaxart is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tonix Pharmaceuticals Holding and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc 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 Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Tonix Pharmaceuticals i.e., Tonix Pharmaceuticals and Vaxart go up and down completely randomly.

Pair Corralation between Tonix Pharmaceuticals and Vaxart

Given the investment horizon of 90 days Tonix Pharmaceuticals Holding is expected to generate 4.09 times more return on investment than Vaxart. However, Tonix Pharmaceuticals is 4.09 times more volatile than Vaxart Inc. It trades about 0.14 of its potential returns per unit of risk. Vaxart Inc is currently generating about -0.03 per unit of risk. If you would invest  15.00  in Tonix Pharmaceuticals Holding on September 30, 2024 and sell it today you would earn a total of  19.00  from holding Tonix Pharmaceuticals Holding or generate 126.67% return on investment over 90 days.

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

Tonix Pharmaceuticals Holding  vs.  Vaxart Inc

Tonix Pharmaceuticals

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tonix Pharmaceuticals Holding are ranked lower than 10 (%) 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.

Vaxart Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaxart Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Tonix Pharmaceuticals and Vaxart

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

The idea behind Tonix Pharmaceuticals Holding and Vaxart Inc 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.