Correlation Between Nyxoah and Pro Dex

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

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

Diversification Opportunities for Nyxoah and Pro Dex

-0.82

Correlation Coefficient

Nyxoah  Pro Dex

Pay attention - limited upside

The 3 months correlation between Nyxoah and Pro is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex 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 Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of Nyxoah i.e., Nyxoah and Pro Dex go up and down completely randomly.

Pair Corralation between Nyxoah and Pro Dex

Given the investment horizon of 90 days Nyxoah is expected to generate 1.7 times more return on investment than Pro Dex. However, Nyxoah is 1.7 times more volatile than Pro Dex. It trades about 0.08 of its potential returns per unit of risk. Pro Dex is currently generating about 0.1 per unit of risk. If you would invest  442.00  in Nyxoah on October 8, 2024 and sell it today you would earn a total of  473.00  from holding Nyxoah or generate 107.01% return on investment over 90 days.

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

Nyxoah  vs.  Pro Dex

Nyxoah

Risk-Adjusted Performance

0 of 100

Very 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.

Pro Dex

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Dex are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Pro Dex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and Pro Dex

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

The idea behind Nyxoah and Pro Dex 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.