Correlation Between Nyxoah and Milestone Scientific

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

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

Diversification Opportunities for Nyxoah and Milestone Scientific

0.53

Correlation Coefficient

Nyxoah  Milestone Scientific

Very weak diversification

The 3 months correlation between Nyxoah and Milestone is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Milestone Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Milestone Scientific 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 Milestone Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Milestone Scientific has no effect on the direction of Nyxoah i.e., Nyxoah and Milestone Scientific go up and down completely randomly.

Pair Corralation between Nyxoah and Milestone Scientific

Given the investment horizon of 90 days Nyxoah is expected to generate 8.36 times less return on investment than Milestone Scientific. But when comparing it to its historical volatility, Nyxoah is 1.24 times less risky than Milestone Scientific. It trades about 0.01 of its potential returns per unit of risk. Milestone Scientific is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  93.00  in Milestone Scientific on December 30, 2024 and sell it today you would earn a total of  6.00  from holding Milestone Scientific or generate 6.45% return on investment over 90 days.

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

Nyxoah  vs.  Milestone Scientific

Nyxoah

Risk-Adjusted Performance

Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Milestone Scientific

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Milestone Scientific are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Milestone Scientific unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and Milestone Scientific

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

The idea behind Nyxoah and Milestone Scientific 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.

Check out your portfolio center.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.