Correlation Between Nyxoah and GlucoTrack

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

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

Diversification Opportunities for Nyxoah and GlucoTrack

-0.06

Correlation Coefficient

Nyxoah  GlucoTrack

Good diversification

The 3 months correlation between Nyxoah and GlucoTrack is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack 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 GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of Nyxoah i.e., Nyxoah and GlucoTrack go up and down completely randomly.

Pair Corralation between Nyxoah and GlucoTrack

Given the investment horizon of 90 days Nyxoah is expected to generate 0.2 times more return on investment than GlucoTrack. However, Nyxoah is 4.94 times less risky than GlucoTrack. It trades about 0.05 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.19 per unit of risk. If you would invest  780.00  in Nyxoah on August 31, 2024 and sell it today you would earn a total of  46.00  from holding Nyxoah or generate 5.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Nyxoah  vs.  GlucoTrack

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.

GlucoTrack

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GlucoTrack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Nyxoah and GlucoTrack

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

The idea behind Nyxoah and GlucoTrack 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..