Correlation Between Edwards Lifesciences and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Edwards Lifesciences 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 Edwards Lifesciences and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edwards Lifesciences Corp and Nyxoah, you can compare the effects of market volatilities on Edwards Lifesciences 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 Edwards Lifesciences with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edwards Lifesciences and Nyxoah.
Diversification Opportunities for Edwards Lifesciences and Nyxoah
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Edwards and Nyxoah is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Edwards Lifesciences Corp and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Edwards Lifesciences 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 Edwards Lifesciences Corp 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 Edwards Lifesciences i.e., Edwards Lifesciences and Nyxoah go up and down completely randomly.
Pair Corralation between Edwards Lifesciences and Nyxoah
Allowing for the 90-day total investment horizon Edwards Lifesciences Corp is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, Edwards Lifesciences Corp is 2.63 times less risky than Nyxoah. The stock trades about -0.02 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Nyxoah on November 1, 2024 and sell it today you would earn a total of 251.00 from holding Nyxoah or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edwards Lifesciences Corp vs. Nyxoah
Performance |
| Timeline |
| Edwards Lifesciences Corp |
| Nyxoah |
Edwards Lifesciences and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edwards Lifesciences and Nyxoah
The main advantage of trading using opposite Edwards Lifesciences and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edwards Lifesciences 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.| Edwards Lifesciences vs. Medtronic PLC | Edwards Lifesciences vs. Abbott Laboratories | Edwards Lifesciences vs. Boston Scientific Corp | Edwards Lifesciences vs. Zimmer Biomet Holdings |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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