Correlation Between HNI Corp and Nyxoah

Can any of the company-specific risk be diversified away by investing in both HNI Corp 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 HNI Corp and Nyxoah into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HNI Corp and Nyxoah, you can compare the effects of market volatilities on HNI Corp 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 HNI Corp with a short position of Nyxoah. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Nyxoah.

Diversification Opportunities for HNI Corp and Nyxoah

0.05

Correlation Coefficient

HNI Corp  Nyxoah

Significant diversification

The 3 months correlation between HNI and Nyxoah is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Nyxoah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyxoah and HNI Corp 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 HNI 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 HNI Corp i.e., HNI Corp and Nyxoah go up and down completely randomly.

Pair Corralation between HNI Corp and Nyxoah

Considering the 90-day investment horizon HNI Corp is expected to generate 2.24 times less return on investment than Nyxoah. But when comparing it to its historical volatility, HNI Corp is 3.99 times less risky than Nyxoah. It trades about 0.1 of its potential returns per unit of risk. Nyxoah is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  519.00  in Nyxoah on August 26, 2024 and sell it today you would earn a total of  281.00  from holding Nyxoah or generate 54.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

HNI Corp  vs.  Nyxoah

HNI Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HNI Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, HNI Corp is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Nyxoah

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nyxoah has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Nyxoah is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with HNI Corp and Nyxoah

The main advantage of trading using opposite HNI Corp and Nyxoah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp 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.

The idea behind HNI Corp and Nyxoah pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.