Correlation Between Milestone Scientific and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Milestone Scientific 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 Milestone Scientific and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Milestone Scientific and Nyxoah, you can compare the effects of market volatilities on Milestone Scientific 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 Milestone Scientific with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Milestone Scientific and Nyxoah.
Diversification Opportunities for Milestone Scientific and Nyxoah
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Milestone and Nyxoah is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific i.e., Milestone Scientific and Nyxoah go up and down completely randomly.
Pair Corralation between Milestone Scientific and Nyxoah
Given the investment horizon of 90 days Milestone Scientific is expected to generate 1.71 times more return on investment than Nyxoah. However, Milestone Scientific is 1.71 times more volatile than Nyxoah. It trades about 0.05 of its potential returns per unit of risk. Nyxoah is currently generating about -0.08 per unit of risk. If you would invest 118.00 in Milestone Scientific on November 18, 2024 and sell it today you would earn a total of 3.00 from holding Milestone Scientific or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Milestone Scientific vs. Nyxoah
Performance |
| Timeline |
| Milestone Scientific |
| Nyxoah |
Milestone Scientific and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Milestone Scientific and Nyxoah
The main advantage of trading using opposite Milestone Scientific and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milestone Scientific 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.| Milestone Scientific vs. InfuSystems Holdings | Milestone Scientific vs. STRATA Skin Sciences | Milestone Scientific vs. Retractable Technologies | Milestone Scientific vs. OncoCyte Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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