Correlation Between Nyxoah and INGEVITY

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

By analyzing existing cross correlation between Nyxoah and INGEVITY P 3875, you can compare the effects of market volatilities on Nyxoah and INGEVITY 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 INGEVITY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and INGEVITY.

Diversification Opportunities for Nyxoah and INGEVITY

0.24

Correlation Coefficient

Nyxoah  INGEVITY

Modest diversification

The 3 months correlation between Nyxoah and INGEVITY is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and INGEVITY P 3875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INGEVITY P 3875 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 INGEVITY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INGEVITY P 3875 has no effect on the direction of Nyxoah i.e., Nyxoah and INGEVITY go up and down completely randomly.

Pair Corralation between Nyxoah and INGEVITY

Given the investment horizon of 90 days Nyxoah is expected to generate 9.96 times more return on investment than INGEVITY. However, Nyxoah is 9.96 times more volatile than INGEVITY P 3875. It trades about 0.06 of its potential returns per unit of risk. INGEVITY P 3875 is currently generating about -0.04 per unit of risk. If you would invest  472.00  in Nyxoah on September 25, 2024 and sell it today you would earn a total of  328.00  from holding Nyxoah or generate 69.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.94%
Values	Daily Returns

Nyxoah  vs.  INGEVITY P 3875

Nyxoah

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Nyxoah is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

INGEVITY P 3875

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INGEVITY P 3875 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating 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 INGEVITY P 3875 investors.

Pair Trading with Nyxoah and INGEVITY

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

The idea behind Nyxoah and INGEVITY P 3875 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.