Correlation Between Nyxoah and Nexgel
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Nexgel 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 Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Nexgel Inc, you can compare the effects of market volatilities on Nyxoah and Nexgel 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 Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Nexgel.
Diversification Opportunities for Nyxoah and Nexgel
Significant diversification
The 3 months correlation between Nyxoah and Nexgel is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel 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 Nexgel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgel Inc has no effect on the direction of Nyxoah i.e., Nyxoah and Nexgel go up and down completely randomly.
Pair Corralation between Nyxoah and Nexgel
Given the investment horizon of 90 days Nyxoah is expected to under-perform the Nexgel. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 2.1 times less risky than Nexgel. The stock trades about -0.29 of its potential returns per unit of risk. The Nexgel Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Nexgel Inc on August 24, 2024 and sell it today you would earn a total of 26.00 from holding Nexgel Inc or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. Nexgel Inc
Performance |
| Timeline |
| Nyxoah |
| Nexgel Inc |
Nyxoah and Nexgel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Nexgel
The main advantage of trading using opposite Nyxoah and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Nexgel 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 Nexgel will offset losses from the drop in Nexgel's long position.| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
| Nexgel vs. Teleflex Incorporated | Nexgel vs. The Cooper Companies, | Nexgel vs. West Pharmaceutical Services | Nexgel vs. ICU Medical |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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