Correlation Between HNI Corp and Nyxoah

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

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

Diversification Opportunities for HNI Corp and Nyxoah

-0.68

Correlation Coefficient

HNI Corp  Nyxoah

Excellent diversification

The 3 months correlation between HNI and Nyxoah is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and HNI Corp 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 HNI 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 HNI Corp i.e., HNI Corp and Nyxoah go up and down completely randomly.

Pair Corralation between HNI Corp and Nyxoah

Considering the 90-day investment horizon HNI Corp is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, HNI Corp is 1.32 times less risky than Nyxoah. The stock trades about -0.09 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  987.00  in Nyxoah on December 5, 2024 and sell it today you would earn a total of  33.00  from holding Nyxoah or generate 3.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	97.5%
Values	Daily Returns

HNI Corp  vs.  Nyxoah

HNI Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days HNI Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Nyxoah

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 13 (%) 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 HNI Corp and Nyxoah

The main advantage of trading using opposite HNI Corp and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp 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 HNI 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.