Correlation Between ICU Medical and Nyxoah
Can any of the company-specific risk be diversified away by investing in both ICU Medical 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 ICU Medical and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and Nyxoah, you can compare the effects of market volatilities on ICU Medical 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 ICU Medical with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and Nyxoah.
Diversification Opportunities for ICU Medical and Nyxoah
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICU and Nyxoah is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and ICU Medical 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 ICU Medical 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 ICU Medical i.e., ICU Medical and Nyxoah go up and down completely randomly.
Pair Corralation between ICU Medical and Nyxoah
Given the investment horizon of 90 days ICU Medical is expected to generate 0.56 times more return on investment than Nyxoah. However, ICU Medical is 1.77 times less risky than Nyxoah. It trades about 0.11 of its potential returns per unit of risk. Nyxoah is currently generating about -0.04 per unit of risk. If you would invest 10,250 in ICU Medical on September 1, 2024 and sell it today you would earn a total of 6,146 from holding ICU Medical or generate 59.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. Nyxoah
Performance |
| Timeline |
| ICU Medical |
| Nyxoah |
ICU Medical and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and Nyxoah
The main advantage of trading using opposite ICU Medical and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical 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.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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