Correlation Between Inogen and Nyxoah

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

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

Diversification Opportunities for Inogen and Nyxoah

-0.34

Correlation Coefficient

Inogen  Nyxoah

Very good diversification

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

Pair Corralation between Inogen and Nyxoah

Given the investment horizon of 90 days Inogen Inc is expected to under-perform the Nyxoah. In addition to that, Inogen is 1.13 times more volatile than Nyxoah. It trades about -0.1 of its total potential returns per unit of risk. Nyxoah is currently generating about -0.04 per unit of volatility. If you would invest  818.00  in Nyxoah on September 18, 2024 and sell it today you would lose (18.00) from holding Nyxoah or give up 2.2% of portfolio value over 90 days.

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

Inogen Inc  vs.  Nyxoah

Inogen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Nyxoah

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Nyxoah is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Inogen and Nyxoah

The main advantage of trading using opposite Inogen and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen 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 Inogen Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.