Correlation Between HNI Corp and Nyxoah
Can any of the company-specific risk be diversified away by investing in both HNI Corp 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 HNI Corp and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Nyxoah, you can compare the effects of market volatilities on HNI Corp 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 HNI Corp with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Nyxoah.
Diversification Opportunities for HNI Corp and Nyxoah
Significant diversification
The 3 months correlation between HNI and Nyxoah is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and HNI Corp 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 HNI 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 HNI Corp i.e., HNI Corp and Nyxoah go up and down completely randomly.
Pair Corralation between HNI Corp and Nyxoah
Considering the 90-day investment horizon HNI Corp is expected to generate 1.47 times less return on investment than Nyxoah. But when comparing it to its historical volatility, HNI Corp is 2.92 times less risky than Nyxoah. It trades about 0.09 of its potential returns per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNI Corp vs. Nyxoah
Performance |
| Timeline |
| HNI Corp |
| Nyxoah |
HNI Corp and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and Nyxoah
The main advantage of trading using opposite HNI Corp and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp 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.The idea behind HNI Corp and Nyxoah pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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