Correlation Between Nyxoah and 02005NBP4

Can any of the company-specific risk be diversified away by investing in both Nyxoah and 02005NBP4 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 02005NBP4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nyxoah and ALLY 22 02 NOV 28, you can compare the effects of market volatilities on Nyxoah and 02005NBP4 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 02005NBP4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and 02005NBP4.

Diversification Opportunities for Nyxoah and 02005NBP4

-0.5

Correlation Coefficient

Nyxoah  02005NBP4

Very good diversification

The 3 months correlation between Nyxoah and 02005NBP4 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and ALLY 22 02 NOV 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLY 22 02 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 02005NBP4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLY 22 02 has no effect on the direction of Nyxoah i.e., Nyxoah and 02005NBP4 go up and down completely randomly.

Pair Corralation between Nyxoah and 02005NBP4

Given the investment horizon of 90 days Nyxoah is expected to generate 2.55 times more return on investment than 02005NBP4. However, Nyxoah is 2.55 times more volatile than ALLY 22 02 NOV 28. It trades about 0.08 of its potential returns per unit of risk. ALLY 22 02 NOV 28 is currently generating about -0.13 per unit of risk. If you would invest  959.00  in Nyxoah on October 23, 2024 and sell it today you would earn a total of  132.00  from holding Nyxoah or generate 13.76% return on investment over 90 days.

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

Nyxoah  vs.  ALLY 22 02 NOV 28

Nyxoah

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 6 (%) 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.

ALLY 22 02

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ALLY 22 02 NOV 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ALLY 22 02 NOV 28 investors.

Pair Trading with Nyxoah and 02005NBP4

The main advantage of trading using opposite Nyxoah and 02005NBP4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, 02005NBP4 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 02005NBP4 will offset losses from the drop in 02005NBP4's long position.

The idea behind Nyxoah and ALLY 22 02 NOV 28 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.