Correlation Between Nyxoah and Argen X
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Argen X 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 Nyxoah and Argen X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Argen X, you can compare the effects of market volatilities on Nyxoah and Argen X 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 Nyxoah with a short position of Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Argen X.
Diversification Opportunities for Nyxoah and Argen X
Very weak diversification
The 3 months correlation between Nyxoah and Argen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X and Nyxoah 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 Nyxoah are associated (or correlated) with Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Nyxoah i.e., Nyxoah and Argen X go up and down completely randomly.
Pair Corralation between Nyxoah and Argen X
Assuming the 90 days trading horizon Nyxoah is expected to generate 1.06 times less return on investment than Argen X. In addition to that, Nyxoah is 1.74 times more volatile than Argen X. It trades about 0.03 of its total potential returns per unit of risk. Argen X is currently generating about 0.05 per unit of volatility. If you would invest 36,470 in Argen X on August 30, 2024 and sell it today you would earn a total of 21,770 from holding Argen X or generate 59.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. Argen X
Performance |
| Timeline |
| Nyxoah |
| Argen X |
Nyxoah and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Argen X
The main advantage of trading using opposite Nyxoah and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X's long position.The idea behind Nyxoah and Argen X 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.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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