Correlation Between Stevanato Group and Nyxoah
Can any of the company-specific risk be diversified away by investing in both Stevanato Group 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 Stevanato Group and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stevanato Group SpA and Nyxoah, you can compare the effects of market volatilities on Stevanato Group 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 Stevanato Group with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stevanato Group and Nyxoah.
Diversification Opportunities for Stevanato Group and Nyxoah
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stevanato and Nyxoah is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and Stevanato Group 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 Stevanato Group SpA 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 Stevanato Group i.e., Stevanato Group and Nyxoah go up and down completely randomly.
Pair Corralation between Stevanato Group and Nyxoah
Given the investment horizon of 90 days Stevanato Group SpA is expected to generate 1.93 times more return on investment than Nyxoah. However, Stevanato Group is 1.93 times more volatile than Nyxoah. It trades about 0.08 of its potential returns per unit of risk. Nyxoah is currently generating about -0.21 per unit of risk. If you would invest 1,880 in Stevanato Group SpA on August 30, 2024 and sell it today you would earn a total of 124.00 from holding Stevanato Group SpA or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stevanato Group SpA vs. Nyxoah
Performance |
| Timeline |
| Stevanato Group SpA |
| Nyxoah |
Stevanato Group and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stevanato Group and Nyxoah
The main advantage of trading using opposite Stevanato Group and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stevanato Group 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.| Stevanato Group vs. ReShape Lifesciences | Stevanato Group vs. Bone Biologics Corp | Stevanato Group vs. Tivic Health Systems | Stevanato Group vs. Nuwellis |
| Nyxoah vs. ReShape Lifesciences | Nyxoah vs. Bone Biologics Corp | Nyxoah vs. Tivic Health Systems | Nyxoah vs. Nuwellis |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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