Correlation Between Vindicator Silver and Nyxoah

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

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

Diversification Opportunities for Vindicator Silver and Nyxoah

0.51

Correlation Coefficient

Vindicator Silver  Nyxoah

Very weak diversification

The 3 months correlation between Vindicator and Nyxoah is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vindicator Silver Lead Mining and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Vindicator Silver 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 Vindicator Silver Lead Mining are associated (or correlated) with Nyxoah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyxoah has no effect on the direction of Vindicator Silver i.e., Vindicator Silver and Nyxoah go up and down completely randomly.

Pair Corralation between Vindicator Silver and Nyxoah

Given the investment horizon of 90 days Vindicator Silver Lead Mining is expected to under-perform the Nyxoah. In addition to that, Vindicator Silver is 1.34 times more volatile than Nyxoah. It trades about -0.16 of its total potential returns per unit of risk. Nyxoah is currently generating about -0.13 per unit of volatility. If you would invest  955.00  in Nyxoah on September 29, 2024 and sell it today you would lose (155.00) from holding Nyxoah or give up 16.23% of portfolio value over 90 days.

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

Vindicator Silver Lead Mining  vs.  Nyxoah

Vindicator Silver Lead

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vindicator Silver Lead Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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.

Pair Trading with Vindicator Silver and Nyxoah

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

The idea behind Vindicator Silver Lead Mining and Nyxoah 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.