Correlation Between Apyx Medical and Nyxoah

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Can any of the company-specific risk be diversified away by investing in both Apyx Medical 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 Apyx Medical and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Nyxoah, you can compare the effects of market volatilities on Apyx Medical 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 Apyx Medical with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Nyxoah.

Diversification Opportunities for Apyx Medical and Nyxoah

-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Apyx and Nyxoah is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Apyx 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 Apyx Medical 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 Apyx Medical i.e., Apyx Medical and Nyxoah go up and down completely randomly.

Pair Corralation between Apyx Medical and Nyxoah

Given the investment horizon of 90 days Apyx Medical is expected to generate 3.32 times more return on investment than Nyxoah. However, Apyx Medical is 3.32 times more volatile than Nyxoah. It trades about 0.23 of its potential returns per unit of risk. Nyxoah is currently generating about -0.04 per unit of risk. If you would invest  123.00  in Apyx Medical on September 17, 2024 and sell it today you would earn a total of  45.00  from holding Apyx Medical or generate 36.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Apyx Medical  vs.  Nyxoah

 Performance 
       Timeline  
Apyx Medical 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Apyx Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Apyx Medical showed solid returns over the last few months and may actually be approaching a breakup point.
Nyxoah 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 latest stock price confusion, may contribute to short-horizon losses for the traders.

Apyx Medical and Nyxoah Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apyx Medical and Nyxoah

The main advantage of trading using opposite Apyx Medical and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical 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 Apyx Medical 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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