Correlation Between Onward Medical and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Onward Medical 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 Onward Medical and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onward Medical NV and Nyxoah, you can compare the effects of market volatilities on Onward Medical 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 Onward Medical with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onward Medical and Nyxoah.
Diversification Opportunities for Onward Medical and Nyxoah
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Onward and Nyxoah is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Onward Medical NV and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Onward Medical 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 Onward Medical 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 Onward Medical i.e., Onward Medical and Nyxoah go up and down completely randomly.
Pair Corralation between Onward Medical and Nyxoah
Assuming the 90 days trading horizon Onward Medical NV is expected to under-perform the Nyxoah. In addition to that, Onward Medical is 1.27 times more volatile than Nyxoah. It trades about -0.29 of its total potential returns per unit of risk. Nyxoah is currently generating about -0.09 per unit of volatility. If you would invest 1,010 in Nyxoah on November 28, 2024 and sell it today you would lose (38.00) from holding Nyxoah or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onward Medical NV vs. Nyxoah
Performance |
| Timeline |
| Onward Medical NV |
| Nyxoah |
Onward Medical and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onward Medical and Nyxoah
The main advantage of trading using opposite Onward Medical and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onward Medical 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.| Onward Medical vs. Hyloris Developmentsen Sa | Onward Medical vs. Biocartis Group NV | Onward Medical vs. Oxurion NV | Onward Medical vs. Unifiedpost Group SA |
| Nyxoah vs. Ion Beam Applications | Nyxoah vs. Vastned Retail Belgium | Nyxoah vs. Retail Estates | Nyxoah vs. Onward Medical NV |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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