Correlation Between Nyxoah and Balchem

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

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

Diversification Opportunities for Nyxoah and Balchem

-0.08

Correlation Coefficient

Nyxoah  Balchem

Good diversification

The 3 months correlation between Nyxoah and Balchem is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Balchem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balchem 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 Balchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balchem has no effect on the direction of Nyxoah i.e., Nyxoah and Balchem go up and down completely randomly.

Pair Corralation between Nyxoah and Balchem

Given the investment horizon of 90 days Nyxoah is expected to generate 3.25 times more return on investment than Balchem. However, Nyxoah is 3.25 times more volatile than Balchem. It trades about 0.02 of its potential returns per unit of risk. Balchem is currently generating about 0.02 per unit of risk. If you would invest  800.00  in Nyxoah on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Nyxoah or generate 0.0% return on investment over 90 days.

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

Nyxoah  vs.  Balchem

Nyxoah

Risk-Adjusted Performance

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 uncertain basic indicators, Nyxoah may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Balchem

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Balchem are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Balchem is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Nyxoah and Balchem

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

The idea behind Nyxoah and Balchem 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.