Correlation Between Nyxoah and Fanhua
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Fanhua 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 Fanhua into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Fanhua Inc, you can compare the effects of market volatilities on Nyxoah and Fanhua 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 Fanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Fanhua.
Diversification Opportunities for Nyxoah and Fanhua
Excellent diversification
The 3 months correlation between Nyxoah and Fanhua is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Fanhua Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fanhua Inc 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 Fanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fanhua Inc has no effect on the direction of Nyxoah i.e., Nyxoah and Fanhua go up and down completely randomly.
Pair Corralation between Nyxoah and Fanhua
Given the investment horizon of 90 days Nyxoah is expected to generate 0.28 times more return on investment than Fanhua. However, Nyxoah is 3.54 times less risky than Fanhua. It trades about 0.13 of its potential returns per unit of risk. Fanhua Inc is currently generating about -0.31 per unit of risk. If you would invest 987.00 in Nyxoah on November 7, 2024 and sell it today you would earn a total of 83.00 from holding Nyxoah or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nyxoah vs. Fanhua Inc
Performance |
| Timeline |
| Nyxoah |
| Fanhua Inc |
Nyxoah and Fanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Fanhua
The main advantage of trading using opposite Nyxoah and Fanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Fanhua 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 Fanhua will offset losses from the drop in Fanhua's long position.| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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