Correlation Between FactSet Research and Nyxoah

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

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

Diversification Opportunities for FactSet Research and Nyxoah

-0.19

Correlation Coefficient

FactSet Research  Nyxoah

Good diversification

The 3 months correlation between FactSet and Nyxoah is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and FactSet Research 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 FactSet Research Systems 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 FactSet Research i.e., FactSet Research and Nyxoah go up and down completely randomly.

Pair Corralation between FactSet Research and Nyxoah

Considering the 90-day investment horizon FactSet Research Systems is expected to generate 0.47 times more return on investment than Nyxoah. However, FactSet Research Systems is 2.12 times less risky than Nyxoah. It trades about 0.14 of its potential returns per unit of risk. Nyxoah is currently generating about 0.02 per unit of risk. If you would invest  43,895  in FactSet Research Systems on September 12, 2024 and sell it today you would earn a total of  4,483  from holding FactSet Research Systems or generate 10.21% return on investment over 90 days.

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

FactSet Research Systems  vs.  Nyxoah

FactSet Research Systems

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FactSet Research Systems are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, FactSet Research may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 FactSet Research and Nyxoah

The main advantage of trading using opposite FactSet Research and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research 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 FactSet Research Systems 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.