Correlation Between Nyxoah and Empire State

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

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

Diversification Opportunities for Nyxoah and Empire State

0.23

Correlation Coefficient

Nyxoah  Empire State

Modest diversification

The 3 months correlation between Nyxoah and Empire is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Empire State Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empire State Realty 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 Empire State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empire State Realty has no effect on the direction of Nyxoah i.e., Nyxoah and Empire State go up and down completely randomly.

Pair Corralation between Nyxoah and Empire State

Given the investment horizon of 90 days Nyxoah is expected to generate 1.05 times more return on investment than Empire State. However, Nyxoah is 1.05 times more volatile than Empire State Realty. It trades about 0.0 of its potential returns per unit of risk. Empire State Realty is currently generating about -0.02 per unit of risk. If you would invest  930.00  in Nyxoah on October 7, 2024 and sell it today you would lose (15.00) from holding Nyxoah or give up 1.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.06%
Values	Daily Returns

Nyxoah  vs.  Empire State Realty

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.

Empire State Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Empire State Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Empire State is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and Empire State

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

The idea behind Nyxoah and Empire State Realty 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.