Correlation Between Tower One and Nyxoah

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

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

Diversification Opportunities for Tower One and Nyxoah

0.0

Correlation Coefficient

Tower One  Nyxoah

Pay attention - limited upside

The 3 months correlation between Tower and Nyxoah is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tower One Wireless and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Tower One 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 Tower One Wireless 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 Tower One i.e., Tower One and Nyxoah go up and down completely randomly.

Pair Corralation between Tower One and Nyxoah

Assuming the 90 days horizon Tower One Wireless is expected to under-perform the Nyxoah. In addition to that, Tower One is 5.11 times more volatile than Nyxoah. It trades about -0.13 of its total potential returns per unit of risk. Nyxoah is currently generating about 0.02 per unit of volatility. If you would invest  784.00  in Nyxoah on September 12, 2024 and sell it today you would earn a total of  12.80  from holding Nyxoah or generate 1.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Tower One Wireless  vs.  Nyxoah

Tower One Wireless

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tower One Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Nyxoah

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 1 (%) 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.

Pair Trading with Tower One and Nyxoah

The main advantage of trading using opposite Tower One and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower One 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 Tower One Wireless 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.