Correlation Between Nyxoah and Titan Machinery
Can any of the company-specific risk be diversified away by investing in both Nyxoah and Titan Machinery 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 Titan Machinery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and Titan Machinery, you can compare the effects of market volatilities on Nyxoah and Titan Machinery 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 Titan Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and Titan Machinery.
Diversification Opportunities for Nyxoah and Titan Machinery
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nyxoah and Titan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and Titan Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Machinery 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 Titan Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Machinery has no effect on the direction of Nyxoah i.e., Nyxoah and Titan Machinery go up and down completely randomly.
Pair Corralation between Nyxoah and Titan Machinery
Given the investment horizon of 90 days Nyxoah is expected to generate 2.3 times more return on investment than Titan Machinery. However, Nyxoah is 2.3 times more volatile than Titan Machinery. It trades about 0.06 of its potential returns per unit of risk. Titan Machinery is currently generating about -0.06 per unit of risk. If you would invest 494.00 in Nyxoah on August 27, 2024 and sell it today you would earn a total of 306.00 from holding Nyxoah or generate 61.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. Titan Machinery
Performance |
| Timeline |
| Nyxoah |
| Titan Machinery |
Nyxoah and Titan Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and Titan Machinery
The main advantage of trading using opposite Nyxoah and Titan Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, Titan Machinery 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 Titan Machinery will offset losses from the drop in Titan Machinery's long position.| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
| Titan Machinery vs. Global Industrial Co | Titan Machinery vs. BlueLinx Holdings | Titan Machinery vs. WESCO International | Titan Machinery vs. MSC Industrial Direct |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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