Correlation Between Nyxoah and Canlan Ice

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

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

Diversification Opportunities for Nyxoah and Canlan Ice

0.24

Correlation Coefficient

Nyxoah  Canlan Ice

Modest diversification

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

Pair Corralation between Nyxoah and Canlan Ice

Given the investment horizon of 90 days Nyxoah is expected to under-perform the Canlan Ice. In addition to that, Nyxoah is 15.36 times more volatile than Canlan Ice Sports. It trades about -0.03 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.18 per unit of volatility. If you would invest  292.00  in Canlan Ice Sports on September 14, 2024 and sell it today you would earn a total of  5.00  from holding Canlan Ice Sports or generate 1.71% return on investment over 90 days.

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

Nyxoah  vs.  Canlan Ice Sports

Nyxoah

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Nyxoah and Canlan Ice

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

The idea behind Nyxoah and Canlan Ice Sports 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.