Correlation Between Nyxoah and Cronos

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

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

Diversification Opportunities for Nyxoah and Cronos

0.72

Correlation Coefficient

Nyxoah  Cronos

Poor diversification

The 3 months correlation between Nyxoah and Cronos is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Cronos Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos Group 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 Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos Group has no effect on the direction of Nyxoah i.e., Nyxoah and Cronos go up and down completely randomly.

Pair Corralation between Nyxoah and Cronos

Given the investment horizon of 90 days Nyxoah is expected to generate 1.6 times more return on investment than Cronos. However, Nyxoah is 1.6 times more volatile than Cronos Group. It trades about 0.33 of its potential returns per unit of risk. Cronos Group is currently generating about 0.07 per unit of risk. If you would invest  754.00  in Nyxoah on October 8, 2024 and sell it today you would earn a total of  161.00  from holding Nyxoah or generate 21.35% return on investment over 90 days.

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

Nyxoah  vs.  Cronos Group

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.

Cronos Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cronos Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cronos 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 Cronos

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

The idea behind Nyxoah and Cronos Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.