Correlation Between Nyxoah and Arrow Electronics
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Arrow Electronics 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 Arrow Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Arrow Electronics, you can compare the effects of market volatilities on Nyxoah and Arrow Electronics 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 Arrow Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Arrow Electronics.
Diversification Opportunities for Nyxoah and Arrow Electronics
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nyxoah and Arrow is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Arrow Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Electronics 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 Arrow Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Electronics has no effect on the direction of Nyxoah i.e., Nyxoah and Arrow Electronics go up and down completely randomly.
Pair Corralation between Nyxoah and Arrow Electronics
Given the investment horizon of 90 days Nyxoah is expected to generate 3.31 times more return on investment than Arrow Electronics. However, Nyxoah is 3.31 times more volatile than Arrow Electronics. It trades about 0.05 of its potential returns per unit of risk. Arrow Electronics is currently generating about 0.02 per unit of risk. If you would invest 486.00 in Nyxoah on August 27, 2024 and sell it today you would earn a total of 314.00 from holding Nyxoah or generate 64.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. Arrow Electronics
Performance |
| Timeline |
| Nyxoah |
| Arrow Electronics |
Nyxoah and Arrow Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Arrow Electronics
The main advantage of trading using opposite Nyxoah and Arrow Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Arrow Electronics 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 Arrow Electronics will offset losses from the drop in Arrow Electronics' long position.| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
| Arrow Electronics vs. Insight Enterprises | Arrow Electronics vs. Synnex | Arrow Electronics vs. Climb Global Solutions | Arrow Electronics vs. ScanSource |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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