Correlation Between Nyxoah and Acco Brands

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

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

Diversification Opportunities for Nyxoah and Acco Brands

-0.66

Correlation Coefficient

Nyxoah  Acco Brands

Excellent diversification

The 3 months correlation between Nyxoah and Acco is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands and Nyxoah 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 Nyxoah are associated (or correlated) with Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of Nyxoah i.e., Nyxoah and Acco Brands go up and down completely randomly.

Pair Corralation between Nyxoah and Acco Brands

Given the investment horizon of 90 days Nyxoah is expected to under-perform the Acco Brands. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 1.24 times less risky than Acco Brands. The stock trades about -0.17 of its potential returns per unit of risk. The Acco Brands is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  503.00  in Acco Brands on September 21, 2024 and sell it today you would earn a total of  40.00  from holding Acco Brands or generate 7.95% return on investment over 90 days.

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

Nyxoah  vs.  Acco Brands

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 newest stock price confusion, may contribute to short-horizon losses for the traders.

Acco Brands

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Acco Brands are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Acco Brands is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and Acco Brands

The main advantage of trading using opposite Nyxoah and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Acco Brands 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 Acco Brands will offset losses from the drop in Acco Brands' long position.

The idea behind Nyxoah and Acco Brands 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.