Correlation Between Nyxoah and BKV

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

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

Diversification Opportunities for Nyxoah and BKV

-0.86

Correlation Coefficient

Nyxoah  BKV

Pay attention - limited upside

The 3 months correlation between Nyxoah and BKV is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and BKV Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKV Corporation 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 BKV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKV Corporation has no effect on the direction of Nyxoah i.e., Nyxoah and BKV go up and down completely randomly.

Pair Corralation between Nyxoah and BKV

Given the investment horizon of 90 days Nyxoah is expected to generate 4.18 times less return on investment than BKV. But when comparing it to its historical volatility, Nyxoah is 1.29 times less risky than BKV. It trades about 0.05 of its potential returns per unit of risk. BKV Corporation is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,176  in BKV Corporation on October 4, 2024 and sell it today you would earn a total of  167.00  from holding BKV Corporation or generate 7.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Nyxoah  vs.  BKV Corp.

Nyxoah

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Nyxoah is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

BKV Corporation

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BKV Corporation are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward-looking signals, BKV showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and BKV

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

The idea behind Nyxoah and BKV Corporation 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.

Check out your portfolio center.

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.