Correlation Between Eyenovia and Tonix Pharmaceuticals

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Can any of the company-specific risk be diversified away by investing in both Eyenovia 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 Eyenovia and Tonix Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eyenovia and Tonix Pharmaceuticals Holding, you can compare the effects of market volatilities on Eyenovia 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 Eyenovia with a short position of Tonix Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyenovia and Tonix Pharmaceuticals.

Diversification Opportunities for Eyenovia and Tonix Pharmaceuticals

EyenoviaTonixDiversified AwayEyenoviaTonixDiversified Away100%
0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Eyenovia and Tonix is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eyenovia and Tonix Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonix Pharmaceuticals and Eyenovia 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 Eyenovia 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 Eyenovia i.e., Eyenovia and Tonix Pharmaceuticals go up and down completely randomly.

Pair Corralation between Eyenovia and Tonix Pharmaceuticals

Given the investment horizon of 90 days Eyenovia is expected to generate 0.47 times more return on investment than Tonix Pharmaceuticals. However, Eyenovia is 2.11 times less risky than Tonix Pharmaceuticals. It trades about -0.35 of its potential returns per unit of risk. Tonix Pharmaceuticals Holding is currently generating about -0.44 per unit of risk. If you would invest  298.00  in Eyenovia on November 30, 2024 and sell it today you would lose (129.00) from holding Eyenovia or give up 43.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Eyenovia  vs.  Tonix Pharmaceuticals Holding

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50050100150200
JavaScript chart by amCharts 3.21.15EYEN TNXP
       Timeline  
Eyenovia 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Eyenovia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb24681012141618
Tonix Pharmaceuticals 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Tonix Pharmaceuticals Holding are ranked lower than 1 (%) 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.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb10203040506070

Eyenovia and Tonix Pharmaceuticals Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-19.19-14.37-9.55-4.74-0.06993.998.1812.3816.5820.78 0.00100.00150.00200.00250.0030
JavaScript chart by amCharts 3.21.15EYEN TNXP
       Returns  

Pair Trading with Eyenovia and Tonix Pharmaceuticals

The main advantage of trading using opposite Eyenovia and Tonix Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyenovia 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 Eyenovia 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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