Correlation Between TNF Pharmaceuticals, and Rand Capital

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

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

Diversification Opportunities for TNF Pharmaceuticals, and Rand Capital

-0.21

Correlation Coefficient

TNF Pharmaceuticals,  Rand Capital

Very good diversification

The 3 months correlation between TNF and Rand is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding TNF Pharmaceuticals, and Rand Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rand Capital Corp and TNF 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 TNF Pharmaceuticals, are associated (or correlated) with Rand Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rand Capital Corp has no effect on the direction of TNF Pharmaceuticals, i.e., TNF Pharmaceuticals, and Rand Capital go up and down completely randomly.

Pair Corralation between TNF Pharmaceuticals, and Rand Capital

Given the investment horizon of 90 days TNF Pharmaceuticals, is expected to under-perform the Rand Capital. In addition to that, TNF Pharmaceuticals, is 1.92 times more volatile than Rand Capital Corp. It trades about -0.05 of its total potential returns per unit of risk. Rand Capital Corp is currently generating about 0.05 per unit of volatility. If you would invest  975.00  in Rand Capital Corp on September 25, 2024 and sell it today you would earn a total of  837.48  from holding Rand Capital Corp or generate 85.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	88.33%
Values	Daily Returns

TNF Pharmaceuticals,  vs.  Rand Capital Corp

TNF Pharmaceuticals,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TNF Pharmaceuticals, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, TNF Pharmaceuticals, is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Rand Capital Corp

Risk-Adjusted Performance

13 of 100

Good

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

Pair Trading with TNF Pharmaceuticals, and Rand Capital

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

The idea behind TNF Pharmaceuticals, and Rand Capital Corp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.