Correlation Between Nyxoah and Hudson Technologies

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

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

Diversification Opportunities for Nyxoah and Hudson Technologies

0.47

Correlation Coefficient

Nyxoah  Hudson Technologies

Very weak diversification

The 3 months correlation between Nyxoah and Hudson is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Hudson Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Technologies 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 Hudson Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Technologies has no effect on the direction of Nyxoah i.e., Nyxoah and Hudson Technologies go up and down completely randomly.

Pair Corralation between Nyxoah and Hudson Technologies

Given the investment horizon of 90 days Nyxoah is expected to generate 0.95 times more return on investment than Hudson Technologies. However, Nyxoah is 1.06 times less risky than Hudson Technologies. It trades about 0.09 of its potential returns per unit of risk. Hudson Technologies is currently generating about -0.09 per unit of risk. If you would invest  812.00  in Nyxoah on October 26, 2024 and sell it today you would earn a total of  256.00  from holding Nyxoah or generate 31.53% return on investment over 90 days.

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

Nyxoah  vs.  Hudson Technologies

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.

Hudson Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hudson Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Nyxoah and Hudson Technologies

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

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