Correlation Between Nyxoah and Cocrystal Pharma

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

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

Diversification Opportunities for Nyxoah and Cocrystal Pharma

-0.45

Correlation Coefficient

Nyxoah  Cocrystal Pharma

Very good diversification

The 3 months correlation between Nyxoah and Cocrystal is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Cocrystal Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cocrystal Pharma 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 Cocrystal Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cocrystal Pharma has no effect on the direction of Nyxoah i.e., Nyxoah and Cocrystal Pharma go up and down completely randomly.

Pair Corralation between Nyxoah and Cocrystal Pharma

Given the investment horizon of 90 days Nyxoah is expected to generate 1.08 times more return on investment than Cocrystal Pharma. However, Nyxoah is 1.08 times more volatile than Cocrystal Pharma. It trades about 0.04 of its potential returns per unit of risk. Cocrystal Pharma is currently generating about 0.03 per unit of risk. If you would invest  573.00  in Nyxoah on October 7, 2024 and sell it today you would earn a total of  342.00  from holding Nyxoah or generate 59.69% return on investment over 90 days.

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

Nyxoah  vs.  Cocrystal Pharma

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 newest stock price confusion, may contribute to short-horizon losses for the traders.

Cocrystal Pharma

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cocrystal Pharma are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental indicators, Cocrystal Pharma reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and Cocrystal Pharma

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

The idea behind Nyxoah and Cocrystal Pharma 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.