Correlation Between INGEVITY and Nyxoah

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

By analyzing existing cross correlation between INGEVITY P 3875 and Nyxoah, you can compare the effects of market volatilities on INGEVITY 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 INGEVITY with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of INGEVITY and Nyxoah.

Diversification Opportunities for INGEVITY and Nyxoah

0.21

Correlation Coefficient

INGEVITY  Nyxoah

Modest diversification

The 3 months correlation between INGEVITY and Nyxoah is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding INGEVITY P 3875 and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and INGEVITY 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 INGEVITY P 3875 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 INGEVITY i.e., INGEVITY and Nyxoah go up and down completely randomly.

Pair Corralation between INGEVITY and Nyxoah

Assuming the 90 days trading horizon INGEVITY P 3875 is expected to under-perform the Nyxoah. But the bond apears to be less risky and, when comparing its historical volatility, INGEVITY P 3875 is 1.3 times less risky than Nyxoah. The bond trades about -0.26 of its potential returns per unit of risk. The Nyxoah is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  814.00  in Nyxoah on September 27, 2024 and sell it today you would lose (14.00) from holding Nyxoah or give up 1.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

INGEVITY P 3875  vs.  Nyxoah

INGEVITY P 3875

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INGEVITY P 3875 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for INGEVITY P 3875 investors.

Nyxoah

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with INGEVITY and Nyxoah

The main advantage of trading using opposite INGEVITY and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INGEVITY 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 INGEVITY P 3875 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.