Correlation Between SunOpta and Nyxoah
Can any of the company-specific risk be diversified away by investing in both SunOpta 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 SunOpta and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Nyxoah, you can compare the effects of market volatilities on SunOpta 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 SunOpta with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Nyxoah.
Diversification Opportunities for SunOpta and Nyxoah
Good diversification
The 3 months correlation between SunOpta and Nyxoah is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and SunOpta 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 SunOpta 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 SunOpta i.e., SunOpta and Nyxoah go up and down completely randomly.
Pair Corralation between SunOpta and Nyxoah
Given the investment horizon of 90 days SunOpta is expected to generate 1.36 times more return on investment than Nyxoah. However, SunOpta is 1.36 times more volatile than Nyxoah. It trades about 0.42 of its potential returns per unit of risk. Nyxoah is currently generating about -0.24 per unit of risk. If you would invest 586.00 in SunOpta on August 31, 2024 and sell it today you would earn a total of 195.00 from holding SunOpta or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Nyxoah
Performance |
| Timeline |
| SunOpta |
| Nyxoah |
SunOpta and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Nyxoah
The main advantage of trading using opposite SunOpta and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta 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.| SunOpta vs. Central Garden Pet | SunOpta vs. Bridgford Foods | SunOpta vs. Lancaster Colony | SunOpta vs. HUMANA INC |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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