Correlation Between Nyxoah and 00206RDS8

Can any of the company-specific risk be diversified away by investing in both Nyxoah and 00206RDS8 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 00206RDS8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nyxoah and ATT INC 545, you can compare the effects of market volatilities on Nyxoah and 00206RDS8 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 00206RDS8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and 00206RDS8.

Diversification Opportunities for Nyxoah and 00206RDS8

-0.16

Correlation Coefficient

Nyxoah  00206RDS8

Good diversification

The 3 months correlation between Nyxoah and 00206RDS8 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and ATT INC 545 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT INC 545 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 00206RDS8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT INC 545 has no effect on the direction of Nyxoah i.e., Nyxoah and 00206RDS8 go up and down completely randomly.

Pair Corralation between Nyxoah and 00206RDS8

Given the investment horizon of 90 days Nyxoah is expected to generate 1.76 times more return on investment than 00206RDS8. However, Nyxoah is 1.76 times more volatile than ATT INC 545. It trades about 0.02 of its potential returns per unit of risk. ATT INC 545 is currently generating about -0.04 per unit of risk. If you would invest  784.00  in Nyxoah on September 13, 2024 and sell it today you would earn a total of  13.00  from holding Nyxoah or generate 1.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.3%
Values	Daily Returns

Nyxoah  vs.  ATT INC 545

Nyxoah

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nyxoah are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

ATT INC 545

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATT INC 545 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 00206RDS8 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nyxoah and 00206RDS8

The main advantage of trading using opposite Nyxoah and 00206RDS8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, 00206RDS8 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 00206RDS8 will offset losses from the drop in 00206RDS8's long position.

The idea behind Nyxoah and ATT INC 545 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.