Correlation Between Old Republic and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Old Republic 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 Old Republic and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and Nyxoah, you can compare the effects of market volatilities on Old Republic 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 Old Republic with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and Nyxoah.
Diversification Opportunities for Old Republic and Nyxoah
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Old and Nyxoah is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Old Republic 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 Old Republic International 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 Old Republic i.e., Old Republic and Nyxoah go up and down completely randomly.
Pair Corralation between Old Republic and Nyxoah
Considering the 90-day investment horizon Old Republic is expected to generate 1.86 times less return on investment than Nyxoah. But when comparing it to its historical volatility, Old Republic International is 4.53 times less risky than Nyxoah. It trades about 0.1 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 576.00 in Nyxoah on September 2, 2024 and sell it today you would earn a total of 250.00 from holding Nyxoah or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Republic International vs. Nyxoah
Performance |
| Timeline |
| Old Republic Interna |
| Nyxoah |
Old Republic and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and Nyxoah
The main advantage of trading using opposite Old Republic and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic 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.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
| Nyxoah vs. Milestone Scientific | Nyxoah vs. Pro Dex | Nyxoah vs. InfuSystems Holdings | Nyxoah vs. Repro Med Systems |
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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