Correlation Between Parker Hannifin and Nyxoah

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

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

Diversification Opportunities for Parker Hannifin and Nyxoah

-0.31

Correlation Coefficient

Parker Hannifin  Nyxoah

Very good diversification

The 3 months correlation between Parker and Nyxoah is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Parker Hannifin 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 Parker Hannifin 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 Parker Hannifin i.e., Parker Hannifin and Nyxoah go up and down completely randomly.

Pair Corralation between Parker Hannifin and Nyxoah

Allowing for the 90-day total investment horizon Parker Hannifin is expected to generate 6.36 times less return on investment than Nyxoah. But when comparing it to its historical volatility, Parker Hannifin is 4.22 times less risky than Nyxoah. It trades about 0.22 of its potential returns per unit of risk. Nyxoah is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  800.00  in Nyxoah on October 26, 2024 and sell it today you would earn a total of  239.00  from holding Nyxoah or generate 29.88% return on investment over 90 days.

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

Parker Hannifin  vs.  Nyxoah

Parker Hannifin

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Parker Hannifin are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal technical indicators, Parker Hannifin may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Nyxoah

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Nyxoah may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Parker Hannifin and Nyxoah

The main advantage of trading using opposite Parker Hannifin and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin 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 Parker Hannifin 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.