Correlation Between Abacus Life and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Abacus Life 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 Abacus Life and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abacus Life and Nyxoah, you can compare the effects of market volatilities on Abacus Life 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 Abacus Life with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abacus Life and Nyxoah.
Diversification Opportunities for Abacus Life and Nyxoah
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abacus and Nyxoah is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Abacus Life and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Abacus Life 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 Abacus Life 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 Abacus Life i.e., Abacus Life and Nyxoah go up and down completely randomly.
Pair Corralation between Abacus Life and Nyxoah
Assuming the 90 days horizon Abacus Life is expected to under-perform the Nyxoah. In addition to that, Abacus Life is 2.37 times more volatile than Nyxoah. It trades about -0.08 of its total potential returns per unit of risk. Nyxoah is currently generating about -0.03 per unit of volatility. If you would invest 818.00 in Nyxoah on September 18, 2024 and sell it today you would lose (17.00) from holding Nyxoah or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abacus Life vs. Nyxoah
Performance |
| Timeline |
| Abacus Life |
| Nyxoah |
Abacus Life and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abacus Life and Nyxoah
The main advantage of trading using opposite Abacus Life and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abacus Life 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.| Abacus Life vs. Nyxoah | Abacus Life vs. Pinterest | Abacus Life vs. Algoma Steel Group | Abacus Life vs. Olympic Steel |
Check out your portfolio center.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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