Correlation Between Nyxoah and Harmony Gold

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

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

Diversification Opportunities for Nyxoah and Harmony Gold

0.23

Correlation Coefficient

Nyxoah  Harmony Gold

Modest diversification

The 3 months correlation between Nyxoah and Harmony is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Harmony Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmony Gold Mining 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 Harmony Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmony Gold Mining has no effect on the direction of Nyxoah i.e., Nyxoah and Harmony Gold go up and down completely randomly.

Pair Corralation between Nyxoah and Harmony Gold

Given the investment horizon of 90 days Nyxoah is expected to generate 1.71 times more return on investment than Harmony Gold. However, Nyxoah is 1.71 times more volatile than Harmony Gold Mining. It trades about 0.07 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.07 per unit of risk. If you would invest  495.00  in Nyxoah on October 21, 2024 and sell it today you would earn a total of  596.00  from holding Nyxoah or generate 120.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	70.14%
Values	Daily Returns

Nyxoah  vs.  Harmony Gold Mining

Nyxoah

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Nyxoah demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Harmony Gold Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harmony Gold Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Harmony Gold is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Nyxoah and Harmony Gold

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

The idea behind Nyxoah and Harmony Gold Mining 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.