Correlation Between VirnetX Holding and Nyxoah
Can any of the company-specific risk be diversified away by investing in both VirnetX Holding 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 VirnetX Holding and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VirnetX Holding Corp and Nyxoah, you can compare the effects of market volatilities on VirnetX Holding 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 VirnetX Holding with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirnetX Holding and Nyxoah.
Diversification Opportunities for VirnetX Holding and Nyxoah
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between VirnetX and Nyxoah is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding VirnetX Holding Corp and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and VirnetX Holding 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 VirnetX Holding Corp 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 VirnetX Holding i.e., VirnetX Holding and Nyxoah go up and down completely randomly.
Pair Corralation between VirnetX Holding and Nyxoah
Considering the 90-day investment horizon VirnetX Holding is expected to generate 1.84 times less return on investment than Nyxoah. But when comparing it to its historical volatility, VirnetX Holding Corp is 1.18 times less risky than Nyxoah. It trades about 0.02 of its potential returns per unit of risk. Nyxoah is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 821.00 in Nyxoah on September 3, 2024 and sell it today you would lose (21.00) from holding Nyxoah or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VirnetX Holding Corp vs. Nyxoah
Performance |
| Timeline |
| VirnetX Holding Corp |
| Nyxoah |
VirnetX Holding and Nyxoah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VirnetX Holding and Nyxoah
The main advantage of trading using opposite VirnetX Holding and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VirnetX Holding 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.| VirnetX Holding vs. Hub Cyber Security | VirnetX Holding vs. authID Inc | VirnetX Holding vs. Aurora Mobile | VirnetX Holding vs. Taoping |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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