Correlation Between Antero Midstream and Nyxoah

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

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

Diversification Opportunities for Antero Midstream and Nyxoah

0.8

Correlation Coefficient

Antero Midstream  Nyxoah

Very poor diversification

The 3 months correlation between Antero and Nyxoah is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Antero Midstream Partners and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Antero Midstream 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 Antero Midstream Partners 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 Antero Midstream i.e., Antero Midstream and Nyxoah go up and down completely randomly.

Pair Corralation between Antero Midstream and Nyxoah

Allowing for the 90-day total investment horizon Antero Midstream is expected to generate 1.31 times less return on investment than Nyxoah. But when comparing it to its historical volatility, Antero Midstream Partners is 1.74 times less risky than Nyxoah. It trades about 0.21 of its potential returns per unit of risk. Nyxoah is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  794.00  in Nyxoah on December 18, 2024 and sell it today you would earn a total of  247.00  from holding Nyxoah or generate 31.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Antero Midstream Partners  vs.  Nyxoah

Antero Midstream Partners

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Antero Midstream Partners are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Antero Midstream displayed solid returns over the last few months and may actually be approaching a breakup point.

Nyxoah

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Nyxoah demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antero Midstream and Nyxoah

The main advantage of trading using opposite Antero Midstream and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Midstream 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 Antero Midstream Partners 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.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.