Correlation Between Nyxoah and ZenaTech
Can any of the company-specific risk be diversified away by investing in both Nyxoah and ZenaTech 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 ZenaTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyxoah and ZenaTech, you can compare the effects of market volatilities on Nyxoah and ZenaTech 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 ZenaTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyxoah and ZenaTech.
Diversification Opportunities for Nyxoah and ZenaTech
Good diversification
The 3 months correlation between Nyxoah and ZenaTech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Nyxoah and ZenaTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZenaTech 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 ZenaTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZenaTech has no effect on the direction of Nyxoah i.e., Nyxoah and ZenaTech go up and down completely randomly.
Pair Corralation between Nyxoah and ZenaTech
Given the investment horizon of 90 days Nyxoah is expected to generate 18.78 times less return on investment than ZenaTech. But when comparing it to its historical volatility, Nyxoah is 10.89 times less risky than ZenaTech. It trades about 0.07 of its potential returns per unit of risk. ZenaTech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 196.00 in ZenaTech on November 2, 2024 and sell it today you would earn a total of 253.00 from holding ZenaTech or generate 129.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyxoah vs. ZenaTech
Performance |
| Timeline |
| Nyxoah |
| ZenaTech |
Nyxoah and ZenaTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyxoah and ZenaTech
The main advantage of trading using opposite Nyxoah and ZenaTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyxoah position performs unexpectedly, ZenaTech 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 ZenaTech will offset losses from the drop in ZenaTech's long position.| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
| ZenaTech vs. Valneva SE ADR | ZenaTech vs. Western Digital | ZenaTech vs. Analog Devices | ZenaTech vs. Asbury Automotive Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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