Correlation Between Nyxoah and ASML Holding

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

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

Diversification Opportunities for Nyxoah and ASML Holding

0.24

Correlation Coefficient

Nyxoah  ASML Holding

Modest diversification

The 3 months correlation between Nyxoah and ASML is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and ASML Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML Holding NV 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 ASML Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML Holding NV has no effect on the direction of Nyxoah i.e., Nyxoah and ASML Holding go up and down completely randomly.

Pair Corralation between Nyxoah and ASML Holding

Given the investment horizon of 90 days Nyxoah is expected to generate 1.66 times more return on investment than ASML Holding. However, Nyxoah is 1.66 times more volatile than ASML Holding NV. It trades about 0.42 of its potential returns per unit of risk. ASML Holding NV is currently generating about 0.22 per unit of risk. If you would invest  754.00  in Nyxoah on October 9, 2024 and sell it today you would earn a total of  233.00  from holding Nyxoah or generate 30.9% return on investment over 90 days.

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

Nyxoah  vs.  ASML Holding NV

Nyxoah

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

ASML Holding NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASML Holding NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's primary indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Nyxoah and ASML Holding

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

The idea behind Nyxoah and ASML Holding NV 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.