Correlation Between Global Partners and Nyxoah

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

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

Diversification Opportunities for Global Partners and Nyxoah

0.0

Correlation Coefficient

Global Partners  Nyxoah

Pay attention - limited upside

The 3 months correlation between Global and Nyxoah is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Partners LP and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Global Partners 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 Global Partners LP 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 Global Partners i.e., Global Partners and Nyxoah go up and down completely randomly.

Pair Corralation between Global Partners and Nyxoah

Assuming the 90 days trading horizon Global Partners is expected to generate 223.38 times less return on investment than Nyxoah. But when comparing it to its historical volatility, Global Partners LP is 11.98 times less risky than Nyxoah. It trades about 0.01 of its potential returns per unit of risk. Nyxoah is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  801.00  in Nyxoah on December 20, 2024 and sell it today you would earn a total of  346.00  from holding Nyxoah or generate 43.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Partners LP  vs.  Nyxoah

Global Partners LP

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Partners LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Global Partners is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Nyxoah

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 16 (%) 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 Global Partners and Nyxoah

The main advantage of trading using opposite Global Partners and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partners 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 Global Partners LP 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.