Correlation Between Tonix Pharmaceuticals and Ocugen
Can any of the company-specific risk be diversified away by investing in both Tonix Pharmaceuticals and Ocugen 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 Ocugen 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 Ocugen Inc, you can compare the effects of market volatilities on Tonix Pharmaceuticals and Ocugen 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 Ocugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonix Pharmaceuticals and Ocugen.
Diversification Opportunities for Tonix Pharmaceuticals and Ocugen
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tonix and Ocugen is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tonix Pharmaceuticals Holding and Ocugen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocugen 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 Ocugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocugen Inc has no effect on the direction of Tonix Pharmaceuticals i.e., Tonix Pharmaceuticals and Ocugen go up and down completely randomly.
Pair Corralation between Tonix Pharmaceuticals and Ocugen
Given the investment horizon of 90 days Tonix Pharmaceuticals Holding is expected to generate 3.15 times more return on investment than Ocugen. However, Tonix Pharmaceuticals is 3.15 times more volatile than Ocugen Inc. It trades about 0.15 of its potential returns per unit of risk. Ocugen Inc is currently generating about -0.22 per unit of risk. If you would invest 31.00 in Tonix Pharmaceuticals Holding on November 2, 2024 and sell it today you would earn a total of 7.00 from holding Tonix Pharmaceuticals Holding or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonix Pharmaceuticals Holding vs. Ocugen Inc
Performance |
| Timeline |
| Tonix Pharmaceuticals |
| Ocugen Inc |
Tonix Pharmaceuticals and Ocugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonix Pharmaceuticals and Ocugen
The main advantage of trading using opposite Tonix Pharmaceuticals and Ocugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonix Pharmaceuticals position performs unexpectedly, Ocugen 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 Ocugen will offset losses from the drop in Ocugen's long position.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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