Correlation Between Heartbeam and Nyxoah

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

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

Diversification Opportunities for Heartbeam and Nyxoah

-0.63

Correlation Coefficient

Heartbeam  Nyxoah

Excellent diversification

The 3 months correlation between Heartbeam and Nyxoah is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Heartbeam and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Heartbeam 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 Heartbeam 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 Heartbeam i.e., Heartbeam and Nyxoah go up and down completely randomly.

Pair Corralation between Heartbeam and Nyxoah

Given the investment horizon of 90 days Heartbeam is expected to generate 1.13 times less return on investment than Nyxoah. In addition to that, Heartbeam is 1.0 times more volatile than Nyxoah. It trades about 0.04 of its total potential returns per unit of risk. Nyxoah is currently generating about 0.04 per unit of volatility. If you would invest  693.00  in Nyxoah on October 5, 2024 and sell it today you would earn a total of  222.00  from holding Nyxoah or generate 32.03% return on investment over 90 days.

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

Heartbeam  vs.  Nyxoah

Heartbeam

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Heartbeam are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Heartbeam may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 Heartbeam and Nyxoah

The main advantage of trading using opposite Heartbeam and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartbeam 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 Heartbeam 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.