Correlation Between Nyxoah and Biocartis Group
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Biocartis Group 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 Biocartis Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Biocartis Group NV, you can compare the effects of market volatilities on Nyxoah and Biocartis Group 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 Biocartis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Biocartis Group.
Diversification Opportunities for Nyxoah and Biocartis Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nyxoah and Biocartis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Biocartis Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocartis Group NV 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 Biocartis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocartis Group NV has no effect on the direction of Nyxoah i.e., Nyxoah and Biocartis Group go up and down completely randomly.
Pair Corralation between Nyxoah and Biocartis Group
Assuming the 90 days trading horizon Nyxoah is expected to generate 3.02 times more return on investment than Biocartis Group. However, Nyxoah is 3.02 times more volatile than Biocartis Group NV. It trades about 0.03 of its potential returns per unit of risk. Biocartis Group NV is currently generating about -0.09 per unit of risk. If you would invest 740.00 in Nyxoah on August 30, 2024 and sell it today you would earn a total of 70.00 from holding Nyxoah or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.5% |
| Values | Daily Returns |
Nyxoah vs. Biocartis Group NV
Performance |
| Timeline |
| Nyxoah |
| Biocartis Group NV |
Nyxoah and Biocartis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Biocartis Group
The main advantage of trading using opposite Nyxoah and Biocartis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Biocartis Group 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 Biocartis Group will offset losses from the drop in Biocartis Group's long position.The idea behind Nyxoah and Biocartis Group NV 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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