Correlation Between Nyxoah and Summit Materials
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Summit Materials 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 Summit Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Summit Materials, you can compare the effects of market volatilities on Nyxoah and Summit Materials 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 Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Summit Materials.
Diversification Opportunities for Nyxoah and Summit Materials
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nyxoah and Summit is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials 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 Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of Nyxoah i.e., Nyxoah and Summit Materials go up and down completely randomly.
Pair Corralation between Nyxoah and Summit Materials
Given the investment horizon of 90 days Nyxoah is expected to generate 2.75 times more return on investment than Summit Materials. However, Nyxoah is 2.75 times more volatile than Summit Materials. It trades about 0.06 of its potential returns per unit of risk. Summit Materials is currently generating about 0.06 per unit of risk. If you would invest 470.00 in Nyxoah on November 5, 2024 and sell it today you would earn a total of 610.00 from holding Nyxoah or generate 129.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. Summit Materials
Performance |
| Timeline |
| Nyxoah |
| Summit Materials |
Nyxoah and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Summit Materials
The main advantage of trading using opposite Nyxoah and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. United States Lime | Summit Materials vs. James Hardie Industries |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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