Correlation Between DIeteren Group and Nyxoah
Can any of the company-specific risk be diversified away by investing in both DIeteren Group 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 DIeteren Group and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIeteren Group SA and Nyxoah, you can compare the effects of market volatilities on DIeteren Group 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 DIeteren Group with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIeteren Group and Nyxoah.
Diversification Opportunities for DIeteren Group and Nyxoah
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DIeteren and Nyxoah is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DIeteren Group SA and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and DIeteren Group 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 DIeteren Group SA 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 DIeteren Group i.e., DIeteren Group and Nyxoah go up and down completely randomly.
Pair Corralation between DIeteren Group and Nyxoah
Assuming the 90 days trading horizon DIeteren Group SA is expected to generate 0.81 times more return on investment than Nyxoah. However, DIeteren Group SA is 1.23 times less risky than Nyxoah. It trades about 0.08 of its potential returns per unit of risk. Nyxoah is currently generating about -0.4 per unit of risk. If you would invest 19,960 in DIeteren Group SA on September 5, 2024 and sell it today you would earn a total of 440.00 from holding DIeteren Group SA or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DIeteren Group SA vs. Nyxoah
Performance |
| Timeline |
| DIeteren Group SA |
| Nyxoah |
DIeteren Group and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIeteren Group and Nyxoah
The main advantage of trading using opposite DIeteren Group and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIeteren Group 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.| DIeteren Group vs. Ackermans Van Haaren | DIeteren Group vs. Sofina Socit Anonyme | DIeteren Group vs. Groep Brussel Lambert | DIeteren Group vs. Barco NV |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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