Correlation Between Nyxoah and National Storage

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

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

Diversification Opportunities for Nyxoah and National Storage

-0.3

Correlation Coefficient

Nyxoah  National Storage

Very good diversification

The 3 months correlation between Nyxoah and National is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and National Storage REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage REIT 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage REIT has no effect on the direction of Nyxoah i.e., Nyxoah and National Storage go up and down completely randomly.

Pair Corralation between Nyxoah and National Storage

Given the investment horizon of 90 days Nyxoah is expected to generate 2.46 times more return on investment than National Storage. However, Nyxoah is 2.46 times more volatile than National Storage REIT. It trades about 0.19 of its potential returns per unit of risk. National Storage REIT is currently generating about -0.1 per unit of risk. If you would invest  800.00  in Nyxoah on December 25, 2024 and sell it today you would earn a total of  323.00  from holding Nyxoah or generate 40.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Nyxoah  vs.  National Storage REIT

Nyxoah

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 15 (%) 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.

National Storage REIT

Risk-Adjusted Performance

Very Weak

Over the last 90 days National Storage REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Nyxoah and National Storage

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

The idea behind Nyxoah and National Storage REIT 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.