Correlation Between Barrick Gold and Nyxoah
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
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barrick and Nyxoah is 0.42. 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 1.31 times less risky than Nyxoah. The stock trades about -0.12 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 769.00 in Nyxoah on September 10, 2024 and sell it today you would lose (4.00) from holding Nyxoah or give up 0.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Barrick Gold Corp vs. Nyxoah
Performance |
Timeline |
Barrick Gold Corp |
Nyxoah |
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.Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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