Correlation Between Newpark Resources and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Newpark Resources 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 Newpark Resources and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newpark Resources and Nyxoah, you can compare the effects of market volatilities on Newpark Resources 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 Newpark Resources with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newpark Resources and Nyxoah.
Diversification Opportunities for Newpark Resources and Nyxoah
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Newpark and Nyxoah is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Newpark Resources and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Newpark Resources 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 Newpark Resources 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 Newpark Resources i.e., Newpark Resources and Nyxoah go up and down completely randomly.
Pair Corralation between Newpark Resources and Nyxoah
Allowing for the 90-day total investment horizon Newpark Resources is expected to generate 1.28 times more return on investment than Nyxoah. However, Newpark Resources is 1.28 times more volatile than Nyxoah. It trades about 0.37 of its potential returns per unit of risk. Nyxoah is currently generating about -0.24 per unit of risk. If you would invest 666.00 in Newpark Resources on September 1, 2024 and sell it today you would earn a total of 170.00 from holding Newpark Resources or generate 25.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newpark Resources vs. Nyxoah
Performance |
| Timeline |
| Newpark Resources |
| Nyxoah |
Newpark Resources and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newpark Resources and Nyxoah
The main advantage of trading using opposite Newpark Resources and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newpark Resources 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.| Newpark Resources vs. Enerflex | Newpark Resources vs. Now Inc | Newpark Resources vs. Bristow Group | Newpark Resources vs. Helix Energy Solutions |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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