Correlation Between Nyxoah and BW Offshore
Can any of the company-specific risk be diversified away by investing in both Nyxoah and BW Offshore 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 BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and BW Offshore Limited, you can compare the effects of market volatilities on Nyxoah and BW Offshore 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 BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and BW Offshore.
Diversification Opportunities for Nyxoah and BW Offshore
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nyxoah and BWOFY is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and BW Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore Limited 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 BW Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW Offshore Limited has no effect on the direction of Nyxoah i.e., Nyxoah and BW Offshore go up and down completely randomly.
Pair Corralation between Nyxoah and BW Offshore
Given the investment horizon of 90 days Nyxoah is expected to generate 3.82 times more return on investment than BW Offshore. However, Nyxoah is 3.82 times more volatile than BW Offshore Limited. It trades about 0.04 of its potential returns per unit of risk. BW Offshore Limited is currently generating about 0.04 per unit of risk. If you would invest 576.00 in Nyxoah on September 2, 2024 and sell it today you would earn a total of 250.00 from holding Nyxoah or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.62% |
| Values | Daily Returns |
Nyxoah vs. BW Offshore Limited
Performance |
| Timeline |
| Nyxoah |
| BW Offshore Limited |
Nyxoah and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and BW Offshore
The main advantage of trading using opposite Nyxoah and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, BW Offshore 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 BW Offshore will offset losses from the drop in BW Offshore's long position.| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
| BW Offshore vs. Legacy Education | BW Offshore vs. Apple Inc | BW Offshore vs. NVIDIA | BW Offshore vs. Microsoft |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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