Correlation Between Nyxoah and Atmos Energy

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

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

Diversification Opportunities for Nyxoah and Atmos Energy

-0.4

Correlation Coefficient

Nyxoah  Atmos Energy

Very good diversification

The 3 months correlation between Nyxoah and Atmos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Atmos Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atmos Energy 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 Atmos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atmos Energy has no effect on the direction of Nyxoah i.e., Nyxoah and Atmos Energy go up and down completely randomly.

Pair Corralation between Nyxoah and Atmos Energy

Given the investment horizon of 90 days Nyxoah is expected to generate 2.94 times more return on investment than Atmos Energy. However, Nyxoah is 2.94 times more volatile than Atmos Energy. It trades about 0.31 of its potential returns per unit of risk. Atmos Energy is currently generating about -0.04 per unit of risk. If you would invest  797.00  in Nyxoah on October 11, 2024 and sell it today you would earn a total of  180.00  from holding Nyxoah or generate 22.58% 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.  Atmos Energy

Nyxoah

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 1 (%) 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.

Atmos Energy

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atmos Energy are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Atmos Energy is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and Atmos Energy

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

The idea behind Nyxoah and Atmos Energy 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.