Correlation Between RBC Bearings and Nyxoah
Can any of the company-specific risk be diversified away by investing in both RBC Bearings 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 RBC Bearings and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RBC Bearings Incorporated and Nyxoah, you can compare the effects of market volatilities on RBC Bearings 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 RBC Bearings with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Bearings and Nyxoah.
Diversification Opportunities for RBC Bearings and Nyxoah
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RBC and Nyxoah is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding RBC Bearings Incorporated and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and RBC Bearings 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 RBC Bearings Incorporated 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 RBC Bearings i.e., RBC Bearings and Nyxoah go up and down completely randomly.
Pair Corralation between RBC Bearings and Nyxoah
Considering the 90-day investment horizon RBC Bearings Incorporated is expected to generate 0.7 times more return on investment than Nyxoah. However, RBC Bearings Incorporated is 1.42 times less risky than Nyxoah. It trades about 0.13 of its potential returns per unit of risk. Nyxoah is currently generating about 0.04 per unit of risk. If you would invest 29,785 in RBC Bearings Incorporated on August 30, 2024 and sell it today you would earn a total of 4,181 from holding RBC Bearings Incorporated or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Bearings Incorporated vs. Nyxoah
Performance |
| Timeline |
| RBC Bearings |
| Nyxoah |
RBC Bearings and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Bearings and Nyxoah
The main advantage of trading using opposite RBC Bearings and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Bearings 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.| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Kennametal | RBC Bearings vs. Toro Co | RBC Bearings vs. Snap On |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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