Correlation Between Microbot Medical and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Microbot 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 Microbot Medical and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Nyxoah, you can compare the effects of market volatilities on Microbot 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 Microbot Medical with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Nyxoah.
Diversification Opportunities for Microbot Medical and Nyxoah
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microbot and Nyxoah is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Microbot 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 Microbot 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 Microbot Medical i.e., Microbot Medical and Nyxoah go up and down completely randomly.
Pair Corralation between Microbot Medical and Nyxoah
Given the investment horizon of 90 days Microbot Medical is expected to generate 1.27 times more return on investment than Nyxoah. However, Microbot Medical is 1.27 times more volatile than Nyxoah. It trades about -0.1 of its potential returns per unit of risk. Nyxoah is currently generating about -0.3 per unit of risk. If you would invest 100.00 in Microbot Medical on August 23, 2024 and sell it today you would lose (7.00) from holding Microbot Medical or give up 7.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Nyxoah
Performance |
| Timeline |
| Microbot Medical |
| Nyxoah |
Microbot Medical and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Nyxoah
The main advantage of trading using opposite Microbot Medical and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot 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.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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