Correlation Between Nyxoah and Omeros

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

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

Diversification Opportunities for Nyxoah and Omeros

-0.53

Correlation Coefficient

Nyxoah  Omeros

Excellent diversification

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

Pair Corralation between Nyxoah and Omeros

Given the investment horizon of 90 days Nyxoah is expected to generate 2.91 times less return on investment than Omeros. But when comparing it to its historical volatility, Nyxoah is 3.21 times less risky than Omeros. It trades about 0.09 of its potential returns per unit of risk. Omeros is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  545.00  in Omeros on October 22, 2024 and sell it today you would earn a total of  388.00  from holding Omeros or generate 71.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.2%
Values	Daily Returns

Nyxoah  vs.  Omeros

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.

Omeros

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Omeros are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Omeros reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and Omeros

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

The idea behind Nyxoah and Omeros 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.