Correlation Between OncoSec Medical and Tenax Therapeutics

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

By analyzing existing cross correlation between OncoSec Medical and Tenax Therapeutics, you can compare the effects of market volatilities on OncoSec Medical and Tenax Therapeutics 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 OncoSec Medical with a short position of Tenax Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of OncoSec Medical and Tenax Therapeutics.

Diversification Opportunities for OncoSec Medical and Tenax Therapeutics

-0.76

Correlation Coefficient

OncoSec Medical  Tenax Therapeutics

Pay attention - limited upside

The 3 months correlation between OncoSec and Tenax is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding OncoSec Medical and Tenax Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenax Therapeutics and OncoSec Medical 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 OncoSec Medical are associated (or correlated) with Tenax Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenax Therapeutics has no effect on the direction of OncoSec Medical i.e., OncoSec Medical and Tenax Therapeutics go up and down completely randomly.

Pair Corralation between OncoSec Medical and Tenax Therapeutics

Given the investment horizon of 90 days OncoSec Medical is expected to under-perform the Tenax Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, OncoSec Medical is 1.09 times less risky than Tenax Therapeutics. The stock trades about -0.09 of its potential returns per unit of risk. The Tenax Therapeutics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  22,400  in Tenax Therapeutics on September 2, 2024 and sell it today you would lose (21,864) from holding Tenax Therapeutics or give up 97.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	31.05%
Values	Daily Returns

OncoSec Medical  vs.  Tenax Therapeutics

OncoSec Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OncoSec Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, OncoSec Medical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Tenax Therapeutics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tenax Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tenax Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OncoSec Medical and Tenax Therapeutics

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

The idea behind OncoSec Medical and Tenax Therapeutics 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.