Correlation Between Nyxoah and Align Technology

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

By analyzing existing cross correlation between Nyxoah and Align Technology, you can compare the effects of market volatilities on Nyxoah and Align Technology 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 Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Align Technology.

Diversification Opportunities for Nyxoah and Align Technology

0.15

Correlation Coefficient

Nyxoah  Align Technology

Average diversification

The 3 months correlation between Nyxoah and Align is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of Nyxoah i.e., Nyxoah and Align Technology go up and down completely randomly.

Pair Corralation between Nyxoah and Align Technology

Given the investment horizon of 90 days Nyxoah is expected to generate 2.09 times more return on investment than Align Technology. However, Nyxoah is 2.09 times more volatile than Align Technology. It trades about 0.01 of its potential returns per unit of risk. Align Technology is currently generating about -0.19 per unit of risk. If you would invest  800.00  in Nyxoah on December 28, 2024 and sell it today you would lose (35.00) from holding Nyxoah or give up 4.37% of portfolio value over 90 days.

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

Nyxoah  vs.  Align Technology

Nyxoah

Risk-Adjusted Performance

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.

Align Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Align Technology 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 April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Nyxoah and Align Technology

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

The idea behind Nyxoah and Align Technology 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 Global Correlations module to find global opportunities by holding instruments from different markets.