Correlation Between Nyxoah and Stevanato Group

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

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

Diversification Opportunities for Nyxoah and Stevanato Group

-0.22

Correlation Coefficient

Nyxoah  Stevanato Group

Very good diversification

The 3 months correlation between Nyxoah and Stevanato is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Stevanato Group SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stevanato Group SpA 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 Stevanato Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stevanato Group SpA has no effect on the direction of Nyxoah i.e., Nyxoah and Stevanato Group go up and down completely randomly.

Pair Corralation between Nyxoah and Stevanato Group

Given the investment horizon of 90 days Nyxoah is expected to generate 0.97 times more return on investment than Stevanato Group. However, Nyxoah is 1.03 times less risky than Stevanato Group. It trades about 0.2 of its potential returns per unit of risk. Stevanato Group SpA is currently generating about 0.05 per unit of risk. If you would invest  800.00  in Nyxoah on December 22, 2024 and sell it today you would earn a total of  336.00  from holding Nyxoah or generate 42.0% return on investment over 90 days.

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

Nyxoah  vs.  Stevanato Group SpA

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.

Stevanato Group SpA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stevanato Group SpA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Stevanato Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Nyxoah and Stevanato Group

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

The idea behind Nyxoah and Stevanato Group SpA 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 CEOs Directory module to screen CEOs from public companies around the world.