Correlation Between Griffon and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Griffon 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 Griffon and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Nyxoah, you can compare the effects of market volatilities on Griffon 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 Griffon with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Nyxoah.
Diversification Opportunities for Griffon and Nyxoah
Very good diversification
The 3 months correlation between Griffon and Nyxoah is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Griffon 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 Griffon 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 Griffon i.e., Griffon and Nyxoah go up and down completely randomly.
Pair Corralation between Griffon and Nyxoah
Considering the 90-day investment horizon Griffon is expected to generate 1.19 times more return on investment than Nyxoah. However, Griffon is 1.19 times more volatile than Nyxoah. It trades about 0.17 of its potential returns per unit of risk. Nyxoah is currently generating about 0.04 per unit of risk. If you would invest 6,227 in Griffon on September 6, 2024 and sell it today you would earn a total of 2,053 from holding Griffon or generate 32.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Griffon vs. Nyxoah
Performance |
Timeline |
Griffon |
Nyxoah |
Griffon and Nyxoah Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Griffon and Nyxoah
The main advantage of trading using opposite Griffon and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon 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.Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
Nyxoah vs. West Pharmaceutical Services | Nyxoah vs. ResMed Inc | Nyxoah vs. ICU Medical | Nyxoah vs. AptarGroup |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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