Correlation Between Nyxoah and Sable Offshore

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

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

Diversification Opportunities for Nyxoah and Sable Offshore

0.39

Correlation Coefficient

Nyxoah  Sable Offshore

Weak diversification

The 3 months correlation between Nyxoah and Sable is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp 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 Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Nyxoah i.e., Nyxoah and Sable Offshore go up and down completely randomly.

Pair Corralation between Nyxoah and Sable Offshore

Given the investment horizon of 90 days Nyxoah is expected to generate 1.15 times more return on investment than Sable Offshore. However, Nyxoah is 1.15 times more volatile than Sable Offshore Corp. It trades about 0.36 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.23 per unit of risk. If you would invest  800.00  in Nyxoah on October 26, 2024 and sell it today you would earn a total of  268.00  from holding Nyxoah or generate 33.5% return on investment over 90 days.

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

Nyxoah  vs.  Sable Offshore Corp

Nyxoah

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 5 (%) 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.

Sable Offshore Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sable Offshore Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Sable Offshore exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and Sable Offshore

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

The idea behind Nyxoah and Sable Offshore Corp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.