Correlation Between Vera Bradley and Nyxoah

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

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

Diversification Opportunities for Vera Bradley and Nyxoah

0.23

Correlation Coefficient

Vera Bradley  Nyxoah

Modest diversification

The 3 months correlation between Vera and Nyxoah is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Vera Bradley and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Vera Bradley 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 Vera Bradley 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 Vera Bradley i.e., Vera Bradley and Nyxoah go up and down completely randomly.

Pair Corralation between Vera Bradley and Nyxoah

Considering the 90-day investment horizon Vera Bradley is expected to under-perform the Nyxoah. In addition to that, Vera Bradley is 1.62 times more volatile than Nyxoah. It trades about -0.27 of its total potential returns per unit of risk. Nyxoah is currently generating about 0.4 per unit of volatility. If you would invest  754.00  in Nyxoah on October 10, 2024 and sell it today you would earn a total of  231.00  from holding Nyxoah or generate 30.64% return on investment over 90 days.

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

Vera Bradley  vs.  Nyxoah

Vera Bradley

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vera Bradley has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Nyxoah

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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 Vera Bradley and Nyxoah

The main advantage of trading using opposite Vera Bradley and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vera Bradley 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 Vera Bradley 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.