Correlation Between Nyxoah and Teradyne

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

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

Diversification Opportunities for Nyxoah and Teradyne

0.04

Correlation Coefficient

Nyxoah  Teradyne

Significant diversification

The 3 months correlation between Nyxoah and Teradyne is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Teradyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradyne 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 Teradyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradyne has no effect on the direction of Nyxoah i.e., Nyxoah and Teradyne go up and down completely randomly.

Pair Corralation between Nyxoah and Teradyne

Given the investment horizon of 90 days Nyxoah is expected to generate 1.41 times more return on investment than Teradyne. However, Nyxoah is 1.41 times more volatile than Teradyne. It trades about 0.42 of its potential returns per unit of risk. Teradyne is currently generating about 0.34 per unit of risk. If you would invest  754.00  in Nyxoah on October 9, 2024 and sell it today you would earn a total of  233.00  from holding Nyxoah or generate 30.9% return on investment over 90 days.

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

Nyxoah  vs.  Teradyne

Nyxoah

Risk-Adjusted Performance

2 of 100

Very 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.

Teradyne

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Teradyne are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Teradyne may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Nyxoah and Teradyne

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

The idea behind Nyxoah and Teradyne 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.