Correlation Between Tenaris SA and Nyxoah

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

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

Diversification Opportunities for Tenaris SA and Nyxoah

0.35

Correlation Coefficient

Tenaris SA  Nyxoah

Weak diversification

The 3 months correlation between Tenaris and Nyxoah is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tenaris SA ADR and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Tenaris SA 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 Tenaris SA ADR 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 Tenaris SA i.e., Tenaris SA and Nyxoah go up and down completely randomly.

Pair Corralation between Tenaris SA and Nyxoah

Allowing for the 90-day total investment horizon Tenaris SA ADR is expected to generate 0.36 times more return on investment than Nyxoah. However, Tenaris SA ADR is 2.77 times less risky than Nyxoah. It trades about 0.08 of its potential returns per unit of risk. Nyxoah is currently generating about 0.02 per unit of risk. If you would invest  3,760  in Tenaris SA ADR on December 28, 2024 and sell it today you would earn a total of  262.00  from holding Tenaris SA ADR or generate 6.97% return on investment over 90 days.

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

Tenaris SA ADR  vs.  Nyxoah

Tenaris SA ADR

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tenaris SA ADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Tenaris SA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Nyxoah

Risk-Adjusted Performance

Weak

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 uncertain basic indicators, Nyxoah may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Tenaris SA and Nyxoah

The main advantage of trading using opposite Tenaris SA and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaris SA 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 Tenaris SA ADR 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.