Correlation Between Repro Med and Nyxoah

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

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

Diversification Opportunities for Repro Med and Nyxoah

-0.15

Correlation Coefficient

Repro Med  Nyxoah

Good diversification

The 3 months correlation between Repro and Nyxoah is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Repro Med Systems and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Repro Med 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 Repro Med 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 Repro Med i.e., Repro Med and Nyxoah go up and down completely randomly.

Pair Corralation between Repro Med and Nyxoah

Given the investment horizon of 90 days Repro Med is expected to generate 2.87 times less return on investment than Nyxoah. But when comparing it to its historical volatility, Repro Med Systems is 1.6 times less risky than Nyxoah. It trades about 0.02 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  800.00  in Nyxoah on August 31, 2024 and sell it today you would earn a total of  26.00  from holding Nyxoah or generate 3.25% return on investment over 90 days.

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

Repro Med Systems  vs.  Nyxoah

Repro Med Systems

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Repro Med Systems are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, Repro Med exhibited solid returns over the last few months and may actually be approaching a breakup point.

Nyxoah

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Nyxoah may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Repro Med and Nyxoah

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

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.