Correlation Between Universal Technical and Nyxoah

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

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

Diversification Opportunities for Universal Technical and Nyxoah

-0.81

Correlation Coefficient

Universal Technical  Nyxoah

Pay attention - limited upside

The 3 months correlation between Universal and Nyxoah is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Universal Technical Institute and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Universal Technical 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 Universal Technical Institute 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 Universal Technical i.e., Universal Technical and Nyxoah go up and down completely randomly.

Pair Corralation between Universal Technical and Nyxoah

Considering the 90-day investment horizon Universal Technical Institute is expected to generate 0.5 times more return on investment than Nyxoah. However, Universal Technical Institute is 2.02 times less risky than Nyxoah. It trades about 0.12 of its potential returns per unit of risk. Nyxoah is currently generating about 0.04 per unit of risk. If you would invest  652.00  in Universal Technical Institute on September 21, 2024 and sell it today you would earn a total of  1,890  from holding Universal Technical Institute or generate 289.88% return on investment over 90 days.

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

Universal Technical Institute  vs.  Nyxoah

Universal Technical

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Technical Institute are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Universal Technical demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 fairly strong basic indicators, Nyxoah is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Universal Technical and Nyxoah

The main advantage of trading using opposite Universal Technical and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Technical 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 Universal Technical Institute 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.