Correlation Between Abacus Life, and Nyxoah

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

By analyzing existing cross correlation between Abacus Life, 9875 and Nyxoah, you can compare the effects of market volatilities on Abacus Life, and Nyxoah 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 Abacus Life, with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abacus Life, and Nyxoah.

Diversification Opportunities for Abacus Life, and Nyxoah

-0.57

Correlation Coefficient

Abacus Life,  Nyxoah

Excellent diversification

The 3 months correlation between Abacus and Nyxoah is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Abacus Life, 9875 and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Abacus Life, 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 Abacus Life, 9875 are associated (or correlated) with Nyxoah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyxoah has no effect on the direction of Abacus Life, i.e., Abacus Life, and Nyxoah go up and down completely randomly.

Pair Corralation between Abacus Life, and Nyxoah

Assuming the 90 days horizon Abacus Life, 9875 is expected to generate 0.31 times more return on investment than Nyxoah. However, Abacus Life, 9875 is 3.28 times less risky than Nyxoah. It trades about 0.13 of its potential returns per unit of risk. Nyxoah is currently generating about -0.04 per unit of risk. If you would invest  2,650  in Abacus Life, 9875 on September 21, 2024 and sell it today you would earn a total of  49.00  from holding Abacus Life, 9875 or generate 1.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Abacus Life, 9875  vs.  Nyxoah

Abacus Life, 9875

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Abacus Life, is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Nyxoah

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Nyxoah is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Abacus Life, and Nyxoah

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

The idea behind Abacus Life, 9875 and Nyxoah 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.