Correlation Between Nyxoah and RCS MediaGroup

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

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

Diversification Opportunities for Nyxoah and RCS MediaGroup

-0.25

Correlation Coefficient

Nyxoah  RCS MediaGroup

Very good diversification

The 3 months correlation between Nyxoah and RCS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA 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 RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Nyxoah i.e., Nyxoah and RCS MediaGroup go up and down completely randomly.

Pair Corralation between Nyxoah and RCS MediaGroup

Given the investment horizon of 90 days Nyxoah is expected to under-perform the RCS MediaGroup. In addition to that, Nyxoah is 1.68 times more volatile than RCS MediaGroup SpA. It trades about -0.03 of its total potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.19 per unit of volatility. If you would invest  79.00  in RCS MediaGroup SpA on September 14, 2024 and sell it today you would earn a total of  14.00  from holding RCS MediaGroup SpA or generate 17.72% return on investment over 90 days.

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

Nyxoah  vs.  RCS MediaGroup SpA

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.

RCS MediaGroup SpA

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RCS MediaGroup SpA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, RCS MediaGroup reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nyxoah and RCS MediaGroup

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

The idea behind Nyxoah and RCS MediaGroup SpA 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.