Correlation Between BAYNGR and Nyxoah

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

By analyzing existing cross correlation between BAYNGR 44 15 JUL 44 and Nyxoah, you can compare the effects of market volatilities on BAYNGR 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 BAYNGR with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAYNGR and Nyxoah.

Diversification Opportunities for BAYNGR and Nyxoah

0.44

Correlation Coefficient

BAYNGR  Nyxoah

Very weak diversification

The 3 months correlation between BAYNGR and Nyxoah is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding BAYNGR 44 15 JUL 44 and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and BAYNGR 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 BAYNGR 44 15 JUL 44 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 BAYNGR i.e., BAYNGR and Nyxoah go up and down completely randomly.

Pair Corralation between BAYNGR and Nyxoah

Assuming the 90 days trading horizon BAYNGR 44 15 JUL 44 is expected to under-perform the Nyxoah. But the bond apears to be less risky and, when comparing its historical volatility, BAYNGR 44 15 JUL 44 is 2.65 times less risky than Nyxoah. The bond trades about -0.01 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  950.00  in Nyxoah on October 21, 2024 and sell it today you would earn a total of  141.00  from holding Nyxoah or generate 14.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	61.29%
Values	Daily Returns

BAYNGR 44 15 JUL 44  vs.  Nyxoah

BAYNGR 44 15

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days BAYNGR 44 15 JUL 44 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BAYNGR is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Nyxoah

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 6 (%) 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 BAYNGR and Nyxoah

The main advantage of trading using opposite BAYNGR and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAYNGR 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 BAYNGR 44 15 JUL 44 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.