Correlation Between Nyxoah and Repligen

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

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

Diversification Opportunities for Nyxoah and Repligen

-0.16

Correlation Coefficient

Nyxoah  Repligen

Good diversification

The 3 months correlation between Nyxoah and Repligen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Nyxoah i.e., Nyxoah and Repligen go up and down completely randomly.

Pair Corralation between Nyxoah and Repligen

Given the investment horizon of 90 days Nyxoah is expected to generate 1.24 times less return on investment than Repligen. But when comparing it to its historical volatility, Nyxoah is 1.25 times less risky than Repligen. It trades about 0.04 of its potential returns per unit of risk. Repligen is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  14,448  in Repligen on September 4, 2024 and sell it today you would earn a total of  598.00  from holding Repligen or generate 4.14% return on investment over 90 days.

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

Nyxoah  vs.  Repligen

Nyxoah

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Repligen

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Repligen may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nyxoah and Repligen

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

The idea behind Nyxoah and Repligen 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.