Correlation Between CleanGo Innovations and Nyxoah

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

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

Diversification Opportunities for CleanGo Innovations and Nyxoah

-0.63

Correlation Coefficient

CleanGo Innovations  Nyxoah

Excellent diversification

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

Pair Corralation between CleanGo Innovations and Nyxoah

Assuming the 90 days horizon CleanGo Innovations is expected to under-perform the Nyxoah. In addition to that, CleanGo Innovations is 1.03 times more volatile than Nyxoah. It trades about -0.04 of its total potential returns per unit of risk. Nyxoah is currently generating about 0.07 per unit of volatility. If you would invest  974.00  in Nyxoah on October 27, 2024 and sell it today you would earn a total of  107.00  from holding Nyxoah or generate 10.99% return on investment over 90 days.

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

CleanGo Innovations  vs.  Nyxoah

CleanGo Innovations

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CleanGo Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Nyxoah

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 5 (%) 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 CleanGo Innovations and Nyxoah

The main advantage of trading using opposite CleanGo Innovations and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanGo Innovations 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 CleanGo Innovations 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.