Correlation Between Nyxoah and AlphaTime Acquisition

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

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

Diversification Opportunities for Nyxoah and AlphaTime Acquisition

0.64

Correlation Coefficient

Nyxoah  AlphaTime Acquisition

Poor diversification

The 3 months correlation between Nyxoah and AlphaTime is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and AlphaTime Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaTime Acquisition 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 AlphaTime Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaTime Acquisition has no effect on the direction of Nyxoah i.e., Nyxoah and AlphaTime Acquisition go up and down completely randomly.

Pair Corralation between Nyxoah and AlphaTime Acquisition

Given the investment horizon of 90 days Nyxoah is expected to generate 11.71 times more return on investment than AlphaTime Acquisition. However, Nyxoah is 11.71 times more volatile than AlphaTime Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. AlphaTime Acquisition Corp is currently generating about 0.06 per unit of risk. If you would invest  525.00  in Nyxoah on December 2, 2024 and sell it today you would earn a total of  479.00  from holding Nyxoah or generate 91.24% return on investment over 90 days.

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

Nyxoah  vs.  AlphaTime Acquisition Corp

Nyxoah

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 10 (%) 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.

AlphaTime Acquisition

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AlphaTime Acquisition Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, AlphaTime Acquisition is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Nyxoah and AlphaTime Acquisition

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

The idea behind Nyxoah and AlphaTime Acquisition Corp 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..