Correlation Between BW Offshore and Nyxoah
Can any of the company-specific risk be diversified away by investing in both BW Offshore 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 BW Offshore and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW Offshore Limited and Nyxoah, you can compare the effects of market volatilities on BW Offshore 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 BW Offshore with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Nyxoah.
Diversification Opportunities for BW Offshore and Nyxoah
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BWOFY and Nyxoah is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and BW Offshore 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 BW Offshore Limited 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 BW Offshore i.e., BW Offshore and Nyxoah go up and down completely randomly.
Pair Corralation between BW Offshore and Nyxoah
Assuming the 90 days horizon BW Offshore is expected to generate 3.66 times less return on investment than Nyxoah. But when comparing it to its historical volatility, BW Offshore Limited is 4.1 times less risky than Nyxoah. It trades about 0.07 of its potential returns per unit of risk. Nyxoah is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Nyxoah on September 2, 2024 and sell it today you would earn a total of 347.00 from holding Nyxoah or generate 72.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BW Offshore Limited vs. Nyxoah
Performance |
| Timeline |
| BW Offshore Limited |
| Nyxoah |
BW Offshore and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW Offshore and Nyxoah
The main advantage of trading using opposite BW Offshore and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore 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.| BW Offshore vs. Legacy Education | BW Offshore vs. Apple Inc | BW Offshore vs. NVIDIA | BW Offshore vs. Microsoft |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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