Correlation Between Ageas SANV and Nyxoah

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

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

Diversification Opportunities for Ageas SANV and Nyxoah

0.08

Correlation Coefficient

Ageas SANV  Nyxoah

Significant diversification

The 3 months correlation between Ageas and Nyxoah is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Ageas SANV 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 ageas SANV 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 Ageas SANV i.e., Ageas SANV and Nyxoah go up and down completely randomly.

Pair Corralation between Ageas SANV and Nyxoah

Assuming the 90 days trading horizon Ageas SANV is expected to generate 7.26 times less return on investment than Nyxoah. But when comparing it to its historical volatility, ageas SANV is 2.69 times less risky than Nyxoah. It trades about 0.01 of its potential returns per unit of risk. Nyxoah is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  792.00  in Nyxoah on September 26, 2024 and sell it today you would earn a total of  18.00  from holding Nyxoah or generate 2.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

ageas SANV  vs.  Nyxoah

ageas SANV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ageas SANV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ageas SANV is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail 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. Even with relatively invariable basic indicators, Nyxoah is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ageas SANV and Nyxoah

The main advantage of trading using opposite Ageas SANV and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV 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 ageas SANV 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.