Correlation Between Willscot Mobile and Nyxoah

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

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

Diversification Opportunities for Willscot Mobile and Nyxoah

0.22

Correlation Coefficient

Willscot Mobile  Nyxoah

Modest diversification

The 3 months correlation between Willscot and Nyxoah is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Willscot Mobile 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 Willscot Mobile Mini 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 Willscot Mobile i.e., Willscot Mobile and Nyxoah go up and down completely randomly.

Pair Corralation between Willscot Mobile and Nyxoah

Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the Nyxoah. In addition to that, Willscot Mobile is 1.15 times more volatile than Nyxoah. It trades about -0.28 of its total potential returns per unit of risk. Nyxoah is currently generating about -0.05 per unit of volatility. If you would invest  820.00  in Nyxoah on September 25, 2024 and sell it today you would lose (19.00) from holding Nyxoah or give up 2.32% of portfolio value over 90 days.

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

Willscot Mobile Mini  vs.  Nyxoah

Willscot Mobile Mini

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Willscot Mobile Mini 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 rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 fairly strong basic indicators, Nyxoah is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Willscot Mobile and Nyxoah

The main advantage of trading using opposite Willscot Mobile and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile 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 Willscot Mobile Mini 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.