Correlation Between Evolution Mining and Nyxoah

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

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

Diversification Opportunities for Evolution Mining and Nyxoah

0.29

Correlation Coefficient

Evolution Mining  Nyxoah

Modest diversification

The 3 months correlation between Evolution and Nyxoah is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Evolution Mining 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 Evolution Mining 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 Evolution Mining i.e., Evolution Mining and Nyxoah go up and down completely randomly.

Pair Corralation between Evolution Mining and Nyxoah

Assuming the 90 days horizon Evolution Mining is expected to generate 1.53 times more return on investment than Nyxoah. However, Evolution Mining is 1.53 times more volatile than Nyxoah. It trades about 0.01 of its potential returns per unit of risk. Nyxoah is currently generating about -0.13 per unit of risk. If you would invest  305.00  in Evolution Mining on September 29, 2024 and sell it today you would lose (5.00) from holding Evolution Mining or give up 1.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Evolution Mining  vs.  Nyxoah

Evolution Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evolution Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Evolution Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Evolution Mining and Nyxoah

The main advantage of trading using opposite Evolution Mining and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining 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 Evolution Mining 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 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.