Correlation Between Retail Estates and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates and Nyxoah, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Nyxoah.
Diversification Opportunities for Retail Estates and Nyxoah
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Retail and Nyxoah is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Retail Estates 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 Retail Estates 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 Retail Estates i.e., Retail Estates and Nyxoah go up and down completely randomly.
Pair Corralation between Retail Estates and Nyxoah
Assuming the 90 days trading horizon Retail Estates is expected to generate 0.55 times more return on investment than Nyxoah. However, Retail Estates is 1.83 times less risky than Nyxoah. It trades about -0.21 of its potential returns per unit of risk. Nyxoah is currently generating about -0.29 per unit of risk. If you would invest 6,040 in Retail Estates on September 13, 2024 and sell it today you would lose (280.00) from holding Retail Estates or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates vs. Nyxoah
Performance |
| Timeline |
| Retail Estates |
| Nyxoah |
Retail Estates and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Nyxoah
The main advantage of trading using opposite Retail Estates and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. Cofinimmo SA | Retail Estates vs. Warehouses de Pauw | Retail Estates vs. Montea CVA | Retail Estates vs. Aedifica |
| Nyxoah vs. Home Invest Belgium | Nyxoah vs. Retail Estates | Nyxoah vs. Keyware Technologies NV | Nyxoah vs. Ion Beam Applications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |