Correlation Between Nyxoah and Utah Medical

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

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

Diversification Opportunities for Nyxoah and Utah Medical

-0.25

Correlation Coefficient

Nyxoah  Utah Medical

Very good diversification

The 3 months correlation between Nyxoah and Utah is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Utah Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utah Medical Products 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 Utah Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utah Medical Products has no effect on the direction of Nyxoah i.e., Nyxoah and Utah Medical go up and down completely randomly.

Pair Corralation between Nyxoah and Utah Medical

Given the investment horizon of 90 days Nyxoah is expected to generate 4.71 times more return on investment than Utah Medical. However, Nyxoah is 4.71 times more volatile than Utah Medical Products. It trades about 0.06 of its potential returns per unit of risk. Utah Medical Products is currently generating about -0.15 per unit of risk. If you would invest  800.00  in Nyxoah on December 27, 2024 and sell it today you would earn a total of  91.00  from holding Nyxoah or generate 11.38% return on investment over 90 days.

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

Nyxoah  vs.  Utah Medical Products

Nyxoah

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 5 (%) 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.

Utah Medical Products

Risk-Adjusted Performance

Very Weak

Over the last 90 days Utah Medical Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Nyxoah and Utah Medical

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

The idea behind Nyxoah and Utah Medical Products 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.