Correlation Between Guardant Health and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Guardant Health 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 Guardant Health and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardant Health and Nyxoah, you can compare the effects of market volatilities on Guardant Health 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 Guardant Health with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardant Health and Nyxoah.
Diversification Opportunities for Guardant Health and Nyxoah
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guardant and Nyxoah is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guardant Health and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Guardant Health 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 Guardant Health 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 Guardant Health i.e., Guardant Health and Nyxoah go up and down completely randomly.
Pair Corralation between Guardant Health and Nyxoah
Allowing for the 90-day total investment horizon Guardant Health is expected to under-perform the Nyxoah. But the stock apears to be less risky and, when comparing its historical volatility, Guardant Health is 1.35 times less risky than Nyxoah. The stock trades about 0.0 of its potential returns per unit of risk. The Nyxoah is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 486.00 in Nyxoah on August 27, 2024 and sell it today you would earn a total of 314.00 from holding Nyxoah or generate 64.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardant Health vs. Nyxoah
Performance |
| Timeline |
| Guardant Health |
| Nyxoah |
Guardant Health and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardant Health and Nyxoah
The main advantage of trading using opposite Guardant Health and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardant Health 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.| Guardant Health vs. Illumina | Guardant Health vs. Twist Bioscience Corp | Guardant Health vs. Natera Inc | Guardant Health vs. Caredx Inc |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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