Correlation Between Barco NV and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Barco NV 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 Barco NV and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barco NV and Nyxoah, you can compare the effects of market volatilities on Barco NV 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 Barco NV with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barco NV and Nyxoah.
Diversification Opportunities for Barco NV and Nyxoah
Very good diversification
The 3 months correlation between Barco and Nyxoah is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Barco NV and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Barco NV 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 Barco NV 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 Barco NV i.e., Barco NV and Nyxoah go up and down completely randomly.
Pair Corralation between Barco NV and Nyxoah
Assuming the 90 days trading horizon Barco NV is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, Barco NV is 2.32 times less risky than Nyxoah. The stock trades about -0.09 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 740.00 in Nyxoah on August 30, 2024 and sell it today you would earn a total of 70.00 from holding Nyxoah or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barco NV vs. Nyxoah
Performance |
| Timeline |
| Barco NV |
| Nyxoah |
Barco NV and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barco NV and Nyxoah
The main advantage of trading using opposite Barco NV and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barco NV 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.| Barco NV vs. Kinepolis Group NV | Barco NV vs. ageas SANV | Barco NV vs. Ackermans Van Haaren | Barco NV vs. Solvay SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |