Correlation Between Nyxoah and CeCors

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

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

Diversification Opportunities for Nyxoah and CeCors

-0.77

Correlation Coefficient

Nyxoah  CeCors

Pay attention - limited upside

The 3 months correlation between Nyxoah and CeCors is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and CeCors Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeCors Inc 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 CeCors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeCors Inc has no effect on the direction of Nyxoah i.e., Nyxoah and CeCors go up and down completely randomly.

Pair Corralation between Nyxoah and CeCors

Given the investment horizon of 90 days Nyxoah is expected to under-perform the CeCors. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 2.68 times less risky than CeCors. The stock trades about -0.01 of its potential returns per unit of risk. The CeCors Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2.80  in CeCors Inc on December 2, 2024 and sell it today you would lose (2.18) from holding CeCors Inc or give up 77.86% of portfolio value over 90 days.

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

Nyxoah  vs.  CeCors Inc

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.

CeCors Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CeCors Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Nyxoah and CeCors

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

The idea behind Nyxoah and CeCors Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.