Correlation Between ReShape Lifesciences and Nyxoah
Can any of the company-specific risk be diversified away by investing in both ReShape Lifesciences 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 ReShape Lifesciences and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReShape Lifesciences and Nyxoah, you can compare the effects of market volatilities on ReShape Lifesciences 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 ReShape Lifesciences with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReShape Lifesciences and Nyxoah.
Diversification Opportunities for ReShape Lifesciences and Nyxoah
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ReShape and Nyxoah is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ReShape Lifesciences and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and ReShape Lifesciences 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 ReShape Lifesciences 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 ReShape Lifesciences i.e., ReShape Lifesciences and Nyxoah go up and down completely randomly.
Pair Corralation between ReShape Lifesciences and Nyxoah
Given the investment horizon of 90 days ReShape Lifesciences is expected to under-perform the Nyxoah. In addition to that, ReShape Lifesciences is 9.26 times more volatile than Nyxoah. It trades about -0.31 of its total potential returns per unit of risk. Nyxoah is currently generating about -0.23 per unit of volatility. If you would invest 1,083 in Nyxoah on November 28, 2024 and sell it today you would lose (83.00) from holding Nyxoah or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ReShape Lifesciences vs. Nyxoah
Performance |
| Timeline |
| ReShape Lifesciences |
| Nyxoah |
ReShape Lifesciences and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReShape Lifesciences and Nyxoah
The main advantage of trading using opposite ReShape Lifesciences and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReShape Lifesciences 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.| ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. Bone Biologics Corp | ReShape Lifesciences vs. Tivic Health Systems | ReShape Lifesciences vs. Nuwellis |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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