Correlation Between Nyxoah and Top KingWin
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Top KingWin 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 Top KingWin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Top KingWin Ltd, you can compare the effects of market volatilities on Nyxoah and Top KingWin 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 Top KingWin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Top KingWin.
Diversification Opportunities for Nyxoah and Top KingWin
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nyxoah and Top is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Top KingWin Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top KingWin 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 Top KingWin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top KingWin has no effect on the direction of Nyxoah i.e., Nyxoah and Top KingWin go up and down completely randomly.
Pair Corralation between Nyxoah and Top KingWin
Given the investment horizon of 90 days Nyxoah is expected to under-perform the Top KingWin. But the stock apears to be less risky and, when comparing its historical volatility, Nyxoah is 2.44 times less risky than Top KingWin. The stock trades about -0.01 of its potential returns per unit of risk. The Top KingWin Ltd is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Top KingWin Ltd on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Top KingWin Ltd or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.8% |
| Values | Daily Returns |
Nyxoah vs. Top KingWin Ltd
Performance |
| Timeline |
| Nyxoah |
| Top KingWin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Nyxoah and Top KingWin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Top KingWin
The main advantage of trading using opposite Nyxoah and Top KingWin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Top KingWin 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 Top KingWin will offset losses from the drop in Top KingWin's long position.The idea behind Nyxoah and Top KingWin Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Top KingWin vs. Dave Busters Entertainment | Top KingWin vs. Nyxoah | Top KingWin vs. Virco Manufacturing | Top KingWin vs. Pinterest |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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