Correlation Between Nyxoah and SunOpta
Can any of the company-specific risk be diversified away by investing in both Nyxoah and SunOpta 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 SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and SunOpta, you can compare the effects of market volatilities on Nyxoah and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and SunOpta.
Diversification Opportunities for Nyxoah and SunOpta
Good diversification
The 3 months correlation between Nyxoah and SunOpta is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Nyxoah i.e., Nyxoah and SunOpta go up and down completely randomly.
Pair Corralation between Nyxoah and SunOpta
Given the investment horizon of 90 days Nyxoah is expected to under-perform the SunOpta. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 1.36 times less risky than SunOpta. The stock trades about -0.24 of its potential returns per unit of risk. The SunOpta is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 586.00 in SunOpta on August 31, 2024 and sell it today you would earn a total of 195.00 from holding SunOpta or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. SunOpta
Performance |
| Timeline |
| Nyxoah |
| SunOpta |
Nyxoah and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and SunOpta
The main advantage of trading using opposite Nyxoah and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
| SunOpta vs. Central Garden Pet | SunOpta vs. Bridgford Foods | SunOpta vs. Lancaster Colony | SunOpta vs. HUMANA INC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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