Correlation Between Anixa Biosciences and Tonix Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Anixa Biosciences 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 Anixa Biosciences and Tonix Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anixa Biosciences and Tonix Pharmaceuticals Holding, you can compare the effects of market volatilities on Anixa Biosciences 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 Anixa Biosciences with a short position of Tonix Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anixa Biosciences and Tonix Pharmaceuticals.
Diversification Opportunities for Anixa Biosciences and Tonix Pharmaceuticals
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anixa and Tonix is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Anixa Biosciences and Tonix Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonix Pharmaceuticals and Anixa Biosciences 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 Anixa Biosciences 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 Anixa Biosciences i.e., Anixa Biosciences and Tonix Pharmaceuticals go up and down completely randomly.
Pair Corralation between Anixa Biosciences and Tonix Pharmaceuticals
Given the investment horizon of 90 days Anixa Biosciences is expected to generate 0.49 times more return on investment than Tonix Pharmaceuticals. However, Anixa Biosciences is 2.05 times less risky than Tonix Pharmaceuticals. It trades about 0.01 of its potential returns per unit of risk. Tonix Pharmaceuticals Holding is currently generating about -0.19 per unit of risk. If you would invest 356.00 in Anixa Biosciences on September 1, 2024 and sell it today you would lose (26.00) from holding Anixa Biosciences or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anixa Biosciences vs. Tonix Pharmaceuticals Holding
Performance |
| Timeline |
| Anixa Biosciences |
| Tonix Pharmaceuticals |
Anixa Biosciences and Tonix Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anixa Biosciences and Tonix Pharmaceuticals
The main advantage of trading using opposite Anixa Biosciences and Tonix Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anixa Biosciences 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.| Anixa Biosciences vs. Cue Biopharma | Anixa Biosciences vs. INmune Bio | Anixa Biosciences vs. In8bio Inc | Anixa Biosciences vs. PolyPid |
| Tonix Pharmaceuticals vs. Sonnet Biotherapeutics Holdings | Tonix Pharmaceuticals vs. Palisade Bio | Tonix Pharmaceuticals vs. Ibio Inc | Tonix Pharmaceuticals vs. Jaguar Animal Health |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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