Correlation Between Nyxoah and Integer Holdings

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

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

Diversification Opportunities for Nyxoah and Integer Holdings

-0.42

Correlation Coefficient

Nyxoah  Integer Holdings

Very good diversification

The 3 months correlation between Nyxoah and Integer is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Integer Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integer Holdings 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 Integer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integer Holdings Corp has no effect on the direction of Nyxoah i.e., Nyxoah and Integer Holdings go up and down completely randomly.

Pair Corralation between Nyxoah and Integer Holdings

Given the investment horizon of 90 days Nyxoah is expected to generate 2.17 times more return on investment than Integer Holdings. However, Nyxoah is 2.17 times more volatile than Integer Holdings Corp. It trades about 0.08 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.13 per unit of risk. If you would invest  959.00  in Nyxoah on October 23, 2024 and sell it today you would earn a total of  132.00  from holding Nyxoah or generate 13.76% return on investment over 90 days.

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

Nyxoah  vs.  Integer Holdings Corp

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.

Integer Holdings Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Integer Holdings Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Integer Holdings may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Nyxoah and Integer Holdings

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

The idea behind Nyxoah and Integer Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.