Correlation Between Nyxoah and CAPITAL

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

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

Diversification Opportunities for Nyxoah and CAPITAL

0.34

Correlation Coefficient

Nyxoah  CAPITAL

Weak diversification

The 3 months correlation between Nyxoah and CAPITAL is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and CAPITAL ONE FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FINL 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 CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FINL has no effect on the direction of Nyxoah i.e., Nyxoah and CAPITAL go up and down completely randomly.

Pair Corralation between Nyxoah and CAPITAL

Given the investment horizon of 90 days Nyxoah is expected to generate 14.13 times more return on investment than CAPITAL. However, Nyxoah is 14.13 times more volatile than CAPITAL ONE FINL. It trades about 0.05 of its potential returns per unit of risk. CAPITAL ONE FINL is currently generating about -0.01 per unit of risk. If you would invest  560.00  in Nyxoah on October 11, 2024 and sell it today you would earn a total of  417.00  from holding Nyxoah or generate 74.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Nyxoah  vs.  CAPITAL ONE FINL

Nyxoah

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 1 (%) 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.

CAPITAL ONE FINL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CAPITAL ONE FINL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CAPITAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and CAPITAL

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

The idea behind Nyxoah and CAPITAL ONE FINL 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.