Correlation Between Nyxoah and Bellevue Life
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Bellevue Life 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 Bellevue Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Bellevue Life Sciences, you can compare the effects of market volatilities on Nyxoah and Bellevue Life 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 Bellevue Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Bellevue Life.
Diversification Opportunities for Nyxoah and Bellevue Life
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nyxoah and Bellevue is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Bellevue Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Life Sciences 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 Bellevue Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Life Sciences has no effect on the direction of Nyxoah i.e., Nyxoah and Bellevue Life go up and down completely randomly.
Pair Corralation between Nyxoah and Bellevue Life
Given the investment horizon of 90 days Nyxoah is expected to under-perform the Bellevue Life. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 1.22 times less risky than Bellevue Life. The stock trades about -0.21 of its potential returns per unit of risk. The Bellevue Life Sciences is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,101 in Bellevue Life Sciences on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Bellevue Life Sciences or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nyxoah vs. Bellevue Life Sciences
Performance |
| Timeline |
| Nyxoah |
| Bellevue Life Sciences |
Nyxoah and Bellevue Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Bellevue Life
The main advantage of trading using opposite Nyxoah and Bellevue Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Bellevue Life 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 Bellevue Life will offset losses from the drop in Bellevue Life's long position.| Nyxoah vs. ReShape Lifesciences | Nyxoah vs. Bone Biologics Corp | Nyxoah vs. Tivic Health Systems | Nyxoah vs. Nuwellis |
| Bellevue Life vs. HNI Corp | Bellevue Life vs. Nyxoah | Bellevue Life vs. MI Homes | Bellevue Life vs. Weibo Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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