Correlation Between Alvotech and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Alvotech 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 Alvotech and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alvotech and Nyxoah, you can compare the effects of market volatilities on Alvotech 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 Alvotech with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and Nyxoah.
Diversification Opportunities for Alvotech and Nyxoah
Poor diversification
The 3 months correlation between Alvotech and Nyxoah is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Alvotech 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 Alvotech 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 Alvotech i.e., Alvotech and Nyxoah go up and down completely randomly.
Pair Corralation between Alvotech and Nyxoah
Given the investment horizon of 90 days Alvotech is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, Alvotech is 1.83 times less risky than Nyxoah. The stock trades about -0.06 of its potential returns per unit of risk. The Nyxoah is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Nyxoah on August 29, 2024 and sell it today you would lose (102.00) from holding Nyxoah or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alvotech vs. Nyxoah
Performance |
| Timeline |
| Alvotech |
| Nyxoah |
Alvotech and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alvotech and Nyxoah
The main advantage of trading using opposite Alvotech and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech 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.| Alvotech vs. Intracellular Th | Alvotech vs. Catalent | Alvotech vs. Amphastar P | Alvotech vs. Assertio Therapeutics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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