Correlation Between Braskem SA and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Braskem SA 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 Braskem SA and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braskem SA Class and Nyxoah, you can compare the effects of market volatilities on Braskem SA 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 Braskem SA with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Nyxoah.
Diversification Opportunities for Braskem SA and Nyxoah
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Braskem and Nyxoah is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Braskem SA 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 Braskem SA Class 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 Braskem SA i.e., Braskem SA and Nyxoah go up and down completely randomly.
Pair Corralation between Braskem SA and Nyxoah
Considering the 90-day investment horizon Braskem SA Class is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, Braskem SA Class is 1.83 times less risky than Nyxoah. The stock trades about -0.05 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 790.00 in Nyxoah on September 2, 2024 and sell it today you would earn a total of 36.00 from holding Nyxoah or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braskem SA Class vs. Nyxoah
Performance |
| Timeline |
| Braskem SA Class |
| Nyxoah |
Braskem SA and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Nyxoah
The main advantage of trading using opposite Braskem SA and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA 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.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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