Correlation Between Barrick Gold and Nyxoah

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Can any of the company-specific risk be diversified away by investing in both Barrick Gold 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 Barrick Gold and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrick Gold Corp and Nyxoah, you can compare the effects of market volatilities on Barrick Gold 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 Barrick Gold with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Nyxoah.

Diversification Opportunities for Barrick Gold and Nyxoah

0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Barrick and Nyxoah is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Barrick Gold 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 Barrick Gold Corp 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 Barrick Gold i.e., Barrick Gold and Nyxoah go up and down completely randomly.

Pair Corralation between Barrick Gold and Nyxoah

Given the investment horizon of 90 days Barrick Gold Corp is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, Barrick Gold Corp is 1.33 times less risky than Nyxoah. The stock trades about -0.1 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  733.00  in Nyxoah on September 7, 2024 and sell it today you would earn a total of  20.00  from holding Nyxoah or generate 2.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Barrick Gold Corp  vs.  Nyxoah

 Performance 
       Timeline  
Barrick Gold Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Barrick Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Nyxoah 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Barrick Gold and Nyxoah Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Barrick Gold and Nyxoah

The main advantage of trading using opposite Barrick Gold and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold 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 Barrick Gold Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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