Correlation Between Nyxoah and Cenergy Holdings
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Cenergy Holdings 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 Cenergy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Cenergy Holdings SA, you can compare the effects of market volatilities on Nyxoah and Cenergy Holdings 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 Cenergy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Cenergy Holdings.
Diversification Opportunities for Nyxoah and Cenergy Holdings
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nyxoah and Cenergy is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Cenergy Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenergy Holdings 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 Cenergy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenergy Holdings has no effect on the direction of Nyxoah i.e., Nyxoah and Cenergy Holdings go up and down completely randomly.
Pair Corralation between Nyxoah and Cenergy Holdings
Assuming the 90 days trading horizon Nyxoah is expected to under-perform the Cenergy Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 1.22 times less risky than Cenergy Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The Cenergy Holdings SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 895.00 in Cenergy Holdings SA on August 29, 2024 and sell it today you would lose (45.00) from holding Cenergy Holdings SA or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. Cenergy Holdings SA
Performance |
| Timeline |
| Nyxoah |
| Cenergy Holdings |
Nyxoah and Cenergy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Cenergy Holdings
The main advantage of trading using opposite Nyxoah and Cenergy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Cenergy Holdings 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 Cenergy Holdings will offset losses from the drop in Cenergy Holdings' long position.The idea behind Nyxoah and Cenergy Holdings SA 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.| Cenergy Holdings vs. NV Bekaert SA | Cenergy Holdings vs. AGFA Gevaert NV | Cenergy Holdings vs. ageas SANV | Cenergy Holdings vs. Exmar NV |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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