Correlation Between Nyxoah and NESNVX

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

By analyzing existing cross correlation between Nyxoah and NESNVX 495 14 MAR 30, you can compare the effects of market volatilities on Nyxoah and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and NESNVX.

Diversification Opportunities for Nyxoah and NESNVX

-0.28

Correlation Coefficient

Nyxoah  NESNVX

Very good diversification

The 3 months correlation between Nyxoah and NESNVX is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and NESNVX 495 14 MAR 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 495 14 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 495 14 has no effect on the direction of Nyxoah i.e., Nyxoah and NESNVX go up and down completely randomly.

Pair Corralation between Nyxoah and NESNVX

Given the investment horizon of 90 days Nyxoah is expected to generate 5.74 times more return on investment than NESNVX. However, Nyxoah is 5.74 times more volatile than NESNVX 495 14 MAR 30. It trades about 0.38 of its potential returns per unit of risk. NESNVX 495 14 MAR 30 is currently generating about -0.06 per unit of risk. If you would invest  754.00  in Nyxoah on October 10, 2024 and sell it today you would earn a total of  223.00  from holding Nyxoah or generate 29.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	47.62%
Values	Daily Returns

Nyxoah  vs.  NESNVX 495 14 MAR 30

Nyxoah

Risk-Adjusted Performance

2 of 100

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.

NESNVX 495 14

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 495 14 MAR 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and NESNVX

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

The idea behind Nyxoah and NESNVX 495 14 MAR 30 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.