Correlation Between Nyxoah and Evolution Mining

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

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

Diversification Opportunities for Nyxoah and Evolution Mining

0.29

Correlation Coefficient

Nyxoah  Evolution Mining

Modest diversification

The 3 months correlation between Nyxoah and Evolution is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Evolution Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Mining 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 Evolution Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Mining has no effect on the direction of Nyxoah i.e., Nyxoah and Evolution Mining go up and down completely randomly.

Pair Corralation between Nyxoah and Evolution Mining

Given the investment horizon of 90 days Nyxoah is expected to under-perform the Evolution Mining. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 1.53 times less risky than Evolution Mining. The stock trades about -0.13 of its potential returns per unit of risk. The Evolution Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. 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

Nyxoah  vs.  Evolution Mining

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.

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.

Pair Trading with Nyxoah and Evolution Mining

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

The idea behind Nyxoah and Evolution Mining 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..