Correlation Between Nyxoah and Barrick Gold

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

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

Diversification Opportunities for Nyxoah and Barrick Gold

0.34

Correlation Coefficient

Nyxoah  Barrick Gold

Weak diversification

The 3 months correlation between Nyxoah and Barrick is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Nyxoah i.e., Nyxoah and Barrick Gold go up and down completely randomly.

Pair Corralation between Nyxoah and Barrick Gold

Given the investment horizon of 90 days Nyxoah is expected to generate 2.75 times more return on investment than Barrick Gold. However, Nyxoah is 2.75 times more volatile than Barrick Gold Corp. It trades about 0.04 of its potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.02 per unit of risk. If you would invest  553.00  in Nyxoah on September 7, 2024 and sell it today you would earn a total of  200.00  from holding Nyxoah or generate 36.17% return on investment over 90 days.

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

Nyxoah  vs.  Barrick Gold Corp

Nyxoah

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Barrick Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barrick Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Nyxoah and Barrick Gold

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

The idea behind Nyxoah and Barrick Gold Corp 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..