Correlation Between ResMed and Nyxoah
Can any of the company-specific risk be diversified away by investing in both ResMed 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 ResMed and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ResMed Inc and Nyxoah, you can compare the effects of market volatilities on ResMed 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 ResMed with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of ResMed and Nyxoah.
Diversification Opportunities for ResMed and Nyxoah
Very good diversification
The 3 months correlation between ResMed and Nyxoah is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ResMed Inc and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and ResMed 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 ResMed Inc 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 ResMed i.e., ResMed and Nyxoah go up and down completely randomly.
Pair Corralation between ResMed and Nyxoah
Considering the 90-day investment horizon ResMed Inc is expected to generate 0.68 times more return on investment than Nyxoah. However, ResMed Inc is 1.46 times less risky than Nyxoah. It trades about -0.03 of its potential returns per unit of risk. Nyxoah is currently generating about -0.25 per unit of risk. If you would invest 24,869 in ResMed Inc on September 12, 2024 and sell it today you would lose (347.00) from holding ResMed Inc or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ResMed Inc vs. Nyxoah
Performance |
| Timeline |
| ResMed Inc |
| Nyxoah |
ResMed and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ResMed and Nyxoah
The main advantage of trading using opposite ResMed and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ResMed 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.| ResMed vs. Teleflex Incorporated | ResMed vs. West Pharmaceutical Services | ResMed vs. Alcon AG | ResMed vs. ICU Medical |
| Nyxoah vs. West Pharmaceutical Services | Nyxoah vs. Alcon AG | Nyxoah vs. ResMed Inc | Nyxoah vs. ICU Medical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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