Correlation Between Nyxoah and Griffon
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Griffon 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 Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Griffon, you can compare the effects of market volatilities on Nyxoah and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Griffon.
Diversification Opportunities for Nyxoah and Griffon
Very good diversification
The 3 months correlation between Nyxoah and Griffon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of Nyxoah i.e., Nyxoah and Griffon go up and down completely randomly.
Pair Corralation between Nyxoah and Griffon
Given the investment horizon of 90 days Nyxoah is expected to under-perform the Griffon. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 2.19 times less risky than Griffon. The stock trades about -0.48 of its potential returns per unit of risk. The Griffon is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 6,928 in Griffon on September 9, 2024 and sell it today you would earn a total of 1,143 from holding Griffon or generate 16.5% 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. Griffon
Performance |
Timeline |
Nyxoah |
Griffon |
Nyxoah and Griffon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nyxoah and Griffon
The main advantage of trading using opposite Nyxoah and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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