Correlation Between OraSure Technologies and Nyxoah

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

By analyzing existing cross correlation between OraSure Technologies and Nyxoah, you can compare the effects of market volatilities on OraSure Technologies and Nyxoah 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 OraSure Technologies with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of OraSure Technologies and Nyxoah.

Diversification Opportunities for OraSure Technologies and Nyxoah

0.07

Correlation Coefficient

OraSure Technologies  Nyxoah

Significant diversification

The 3 months correlation between OraSure and Nyxoah is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding OraSure Technologies and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and OraSure Technologies 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 OraSure Technologies are associated (or correlated) with Nyxoah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyxoah has no effect on the direction of OraSure Technologies i.e., OraSure Technologies and Nyxoah go up and down completely randomly.

Pair Corralation between OraSure Technologies and Nyxoah

Given the investment horizon of 90 days OraSure Technologies is expected to generate 11.14 times less return on investment than Nyxoah. In addition to that, OraSure Technologies is 1.34 times more volatile than Nyxoah. It trades about 0.01 of its total potential returns per unit of risk. Nyxoah is currently generating about 0.21 per unit of volatility. If you would invest  800.00  in Nyxoah on December 21, 2024 and sell it today you would earn a total of  347.00  from holding Nyxoah or generate 43.38% return on investment over 90 days.

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

OraSure Technologies  vs.  Nyxoah

OraSure Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OraSure Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, OraSure Technologies is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Nyxoah

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 16 (%) 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.

Pair Trading with OraSure Technologies and Nyxoah

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

The idea behind OraSure Technologies and Nyxoah 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.