Correlation Between Tradeweb Markets and Nyxoah

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

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

Diversification Opportunities for Tradeweb Markets and Nyxoah

-0.44

Correlation Coefficient

Tradeweb Markets  Nyxoah

Very good diversification

The 3 months correlation between Tradeweb and Nyxoah is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Tradeweb Markets 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 Tradeweb Markets 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 Tradeweb Markets i.e., Tradeweb Markets and Nyxoah go up and down completely randomly.

Pair Corralation between Tradeweb Markets and Nyxoah

Allowing for the 90-day total investment horizon Tradeweb Markets is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, Tradeweb Markets is 2.38 times less risky than Nyxoah. The stock trades about -0.04 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  958.00  in Nyxoah on October 24, 2024 and sell it today you would earn a total of  81.00  from holding Nyxoah or generate 8.46% return on investment over 90 days.

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

Tradeweb Markets  vs.  Nyxoah

Tradeweb Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tradeweb Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Tradeweb Markets is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Nyxoah

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 4 (%) 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 Tradeweb Markets and Nyxoah

The main advantage of trading using opposite Tradeweb Markets and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeweb Markets 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 Tradeweb Markets 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.