Correlation Between Nyxoah and Artisan Partners

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

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

Diversification Opportunities for Nyxoah and Artisan Partners

-0.5

Correlation Coefficient

Nyxoah  Artisan Partners

Very good diversification

The 3 months correlation between Nyxoah and Artisan is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset 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 Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of Nyxoah i.e., Nyxoah and Artisan Partners go up and down completely randomly.

Pair Corralation between Nyxoah and Artisan Partners

Given the investment horizon of 90 days Nyxoah is expected to generate 1.88 times more return on investment than Artisan Partners. However, Nyxoah is 1.88 times more volatile than Artisan Partners Asset. It trades about 0.17 of its potential returns per unit of risk. Artisan Partners Asset is currently generating about -0.11 per unit of risk. If you would invest  753.00  in Nyxoah on December 5, 2024 and sell it today you would earn a total of  238.00  from holding Nyxoah or generate 31.61% return on investment over 90 days.

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

Nyxoah  vs.  Artisan Partners Asset

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.

Artisan Partners Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days Artisan Partners Asset has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Nyxoah and Artisan Partners

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

The idea behind Nyxoah and Artisan Partners Asset 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.