Correlation Between Falcons Beyond and Nyxoah

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

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

Diversification Opportunities for Falcons Beyond and Nyxoah

-0.51

Correlation Coefficient

Falcons Beyond  Nyxoah

Excellent diversification

The 3 months correlation between Falcons and Nyxoah is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Falcons Beyond Global, and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Falcons Beyond 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 Falcons Beyond Global, 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 Falcons Beyond i.e., Falcons Beyond and Nyxoah go up and down completely randomly.

Pair Corralation between Falcons Beyond and Nyxoah

Given the investment horizon of 90 days Falcons Beyond Global, is expected to under-perform the Nyxoah. In addition to that, Falcons Beyond is 1.05 times more volatile than Nyxoah. It trades about -0.53 of its total potential returns per unit of risk. Nyxoah is currently generating about 0.41 per unit of volatility. If you would invest  800.00  in Nyxoah on October 23, 2024 and sell it today you would earn a total of  291.00  from holding Nyxoah or generate 36.38% return on investment over 90 days.

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

Falcons Beyond Global,  vs.  Nyxoah

Falcons Beyond Global,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Falcons Beyond Global, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Nyxoah

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 6 (%) 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 Falcons Beyond and Nyxoah

The main advantage of trading using opposite Falcons Beyond and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcons Beyond 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 Falcons Beyond Global, 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.