Correlation Between Nyxoah and Keyware Technologies

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

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

Diversification Opportunities for Nyxoah and Keyware Technologies

0.24

Correlation Coefficient

Nyxoah  Keyware Technologies

Modest diversification

The 3 months correlation between Nyxoah and Keyware is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Keyware Technologies NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyware Technologies and Nyxoah 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 Nyxoah are associated (or correlated) with Keyware Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyware Technologies has no effect on the direction of Nyxoah i.e., Nyxoah and Keyware Technologies go up and down completely randomly.

Pair Corralation between Nyxoah and Keyware Technologies

Assuming the 90 days trading horizon Nyxoah is expected to generate 1.6 times more return on investment than Keyware Technologies. However, Nyxoah is 1.6 times more volatile than Keyware Technologies NV. It trades about 0.04 of its potential returns per unit of risk. Keyware Technologies NV is currently generating about 0.0 per unit of risk. If you would invest  501.00  in Nyxoah on September 24, 2024 and sell it today you would earn a total of  279.00  from holding Nyxoah or generate 55.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.44%
Values	Daily Returns

Nyxoah  vs.  Keyware Technologies NV

Nyxoah

Risk-Adjusted Performance

2 of 100

Insignificant

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.

Keyware Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Keyware Technologies NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Keyware Technologies 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 Nyxoah and Keyware Technologies

The main advantage of trading using opposite Nyxoah and Keyware Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Keyware Technologies 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 Keyware Technologies will offset losses from the drop in Keyware Technologies' long position.

The idea behind Nyxoah and Keyware Technologies NV 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.