Correlation Between Ontex Group and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Ontex Group and Nyxoah 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 Ontex Group and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ontex Group NV and Nyxoah, you can compare the effects of market volatilities on Ontex Group and Nyxoah 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 Ontex Group with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ontex Group and Nyxoah.
Diversification Opportunities for Ontex Group and Nyxoah
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ontex and Nyxoah is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ontex Group NV and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Ontex Group 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 Ontex Group NV are associated (or correlated) with Nyxoah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyxoah has no effect on the direction of Ontex Group i.e., Ontex Group and Nyxoah go up and down completely randomly.
Pair Corralation between Ontex Group and Nyxoah
Assuming the 90 days trading horizon Ontex Group is expected to generate 2.98 times less return on investment than Nyxoah. But when comparing it to its historical volatility, Ontex Group NV is 3.02 times less risky than Nyxoah. It trades about 0.04 of its potential returns per unit of risk. Nyxoah is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 567.00 in Nyxoah on August 30, 2024 and sell it today you would earn a total of 243.00 from holding Nyxoah or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ontex Group NV vs. Nyxoah
Performance |
| Timeline |
| Ontex Group NV |
| Nyxoah |
Ontex Group and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ontex Group and Nyxoah
The main advantage of trading using opposite Ontex Group and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ontex Group position performs unexpectedly, Nyxoah 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 Nyxoah will offset losses from the drop in Nyxoah's long position.| Ontex Group vs. Bpost NV | Ontex Group vs. Barco NV | Ontex Group vs. Biocartis Group NV | Ontex Group vs. ageas SANV |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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