Correlation Between Scientific and Nyxoah

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

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

Diversification Opportunities for Scientific and Nyxoah

-0.56

Correlation Coefficient

Scientific  Nyxoah

Excellent diversification

The 3 months correlation between Scientific and Nyxoah is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games International and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Scientific 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 Scientific Games International 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 Scientific i.e., Scientific and Nyxoah go up and down completely randomly.

Pair Corralation between Scientific and Nyxoah

Assuming the 90 days trading horizon Scientific Games International is expected to generate 8.73 times more return on investment than Nyxoah. However, Scientific is 8.73 times more volatile than Nyxoah. It trades about 0.04 of its potential returns per unit of risk. Nyxoah is currently generating about 0.05 per unit of risk. If you would invest  10,184  in Scientific Games International on October 24, 2024 and sell it today you would lose (504.00) from holding Scientific Games International or give up 4.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	89.68%
Values	Daily Returns

Scientific Games International  vs.  Nyxoah

Scientific Games Int

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scientific Games International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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 Scientific Games International investors.

Nyxoah

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 5 (%) 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 Scientific and Nyxoah

The main advantage of trading using opposite Scientific and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific 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 Scientific Games International 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.