Correlation Between Vaxart and Tonix Pharmaceuticals

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

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

Diversification Opportunities for Vaxart and Tonix Pharmaceuticals

-0.47

Correlation Coefficient

Vaxart  Tonix Pharmaceuticals

Very good diversification

The 3 months correlation between Vaxart and Tonix is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Vaxart Inc and Tonix Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonix Pharmaceuticals and Vaxart 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 Vaxart Inc 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 Vaxart i.e., Vaxart and Tonix Pharmaceuticals go up and down completely randomly.

Pair Corralation between Vaxart and Tonix Pharmaceuticals

Given the investment horizon of 90 days Vaxart Inc is expected to under-perform the Tonix Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Vaxart Inc is 4.09 times less risky than Tonix Pharmaceuticals. The stock trades about -0.03 of its potential returns per unit of risk. The Tonix Pharmaceuticals Holding is currently generating about 0.14 of returns per unit of risk over similar time horizon. 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

Vaxart Inc  vs.  Tonix Pharmaceuticals Holding

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.

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.

Pair Trading with Vaxart and Tonix Pharmaceuticals

The main advantage of trading using opposite Vaxart and Tonix Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaxart 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 Vaxart Inc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.