Correlation Between Nyxoah and Global E

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

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

Diversification Opportunities for Nyxoah and Global E

-0.91

Correlation Coefficient

Nyxoah  Global E

Pay attention - limited upside

The 3 months correlation between Nyxoah and Global is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Nyxoah i.e., Nyxoah and Global E go up and down completely randomly.

Pair Corralation between Nyxoah and Global E

Given the investment horizon of 90 days Nyxoah is expected to generate 14.09 times less return on investment than Global E. In addition to that, Nyxoah is 1.08 times more volatile than Global E Online. It trades about 0.01 of its total potential returns per unit of risk. Global E Online is currently generating about 0.13 per unit of volatility. If you would invest  5,235  in Global E Online on October 3, 2024 and sell it today you would earn a total of  218.00  from holding Global E Online or generate 4.16% return on investment over 90 days.

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

Nyxoah  vs.  Global E Online

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 latest unfluctuating performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Global E Online

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global E Online are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental drivers, Global E exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and Global E

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

The idea behind Nyxoah and Global E Online 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.