Correlation Between Canlan Ice and Nyxoah

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

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

Diversification Opportunities for Canlan Ice and Nyxoah

0.39

Correlation Coefficient

Canlan Ice  Nyxoah

Weak diversification

The 3 months correlation between Canlan and Nyxoah is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Nyxoah go up and down completely randomly.

Pair Corralation between Canlan Ice and Nyxoah

Assuming the 90 days horizon Canlan Ice is expected to generate 16.32 times less return on investment than Nyxoah. But when comparing it to its historical volatility, Canlan Ice Sports is 51.32 times less risky than Nyxoah. It trades about 0.13 of its potential returns per unit of risk. Nyxoah is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  520.00  in Nyxoah on September 13, 2024 and sell it today you would earn a total of  277.00  from holding Nyxoah or generate 53.27% return on investment over 90 days.

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

Canlan Ice Sports  vs.  Nyxoah

Canlan Ice Sports

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canlan Ice Sports are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Canlan Ice 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

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 1 (%) 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 Canlan Ice and Nyxoah

The main advantage of trading using opposite Canlan Ice and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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 Canlan Ice Sports 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.