Correlation Between Nyxoah and Global Partners

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

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

Diversification Opportunities for Nyxoah and Global Partners

-0.11

Correlation Coefficient

Nyxoah  Global Partners

Good diversification

The 3 months correlation between Nyxoah and Global is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Global Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partners LP 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 Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partners LP has no effect on the direction of Nyxoah i.e., Nyxoah and Global Partners go up and down completely randomly.

Pair Corralation between Nyxoah and Global Partners

Given the investment horizon of 90 days Nyxoah is expected to generate 34.45 times more return on investment than Global Partners. However, Nyxoah is 34.45 times more volatile than Global Partners LP. It trades about 0.33 of its potential returns per unit of risk. Global Partners LP is currently generating about 0.5 per unit of risk. If you would invest  800.00  in Nyxoah on October 25, 2024 and sell it today you would earn a total of  239.00  from holding Nyxoah or generate 29.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Nyxoah  vs.  Global Partners LP

Nyxoah

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Nyxoah may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Global Partners LP

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global Partners LP are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Global Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and Global Partners

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

The idea behind Nyxoah and Global Partners LP 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.