Correlation Between Nyxoah and Bowen Acquisition

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

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

Diversification Opportunities for Nyxoah and Bowen Acquisition

-0.71

Correlation Coefficient

Nyxoah  Bowen Acquisition

Pay attention - limited upside

The 3 months correlation between Nyxoah and Bowen is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Bowen Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowen Acquisition Corp 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 Bowen Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowen Acquisition Corp has no effect on the direction of Nyxoah i.e., Nyxoah and Bowen Acquisition go up and down completely randomly.

Pair Corralation between Nyxoah and Bowen Acquisition

Given the investment horizon of 90 days Nyxoah is expected to generate 30.3 times more return on investment than Bowen Acquisition. However, Nyxoah is 30.3 times more volatile than Bowen Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. Bowen Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest  559.00  in Nyxoah on October 10, 2024 and sell it today you would earn a total of  426.00  from holding Nyxoah or generate 76.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	70.91%
Values	Daily Returns

Nyxoah  vs.  Bowen Acquisition Corp

Nyxoah

Risk-Adjusted Performance

2 of 100

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.

Bowen Acquisition Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bowen Acquisition Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Bowen Acquisition is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and Bowen Acquisition

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

The idea behind Nyxoah and Bowen 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.