Correlation Between Nyxoah and Cheer Holding

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

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

Diversification Opportunities for Nyxoah and Cheer Holding

0.09

Correlation Coefficient

Nyxoah  Cheer Holding

Significant diversification

The 3 months correlation between Nyxoah and Cheer is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Cheer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Holding 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 Cheer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Holding has no effect on the direction of Nyxoah i.e., Nyxoah and Cheer Holding go up and down completely randomly.

Pair Corralation between Nyxoah and Cheer Holding

Given the investment horizon of 90 days Nyxoah is expected to generate 1.13 times more return on investment than Cheer Holding. However, Nyxoah is 1.13 times more volatile than Cheer Holding. It trades about 0.09 of its potential returns per unit of risk. Cheer Holding is currently generating about -0.08 per unit of risk. If you would invest  950.00  in Nyxoah on October 21, 2024 and sell it today you would earn a total of  141.00  from holding Nyxoah or generate 14.84% return on investment over 90 days.

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

Nyxoah  vs.  Cheer Holding

Nyxoah

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 6 (%) 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.

Cheer Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cheer Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Nyxoah and Cheer Holding

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

The idea behind Nyxoah and Cheer Holding 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.