Correlation Between Apyx Medical and DexCom
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and DexCom 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 Apyx Medical and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and DexCom Inc, you can compare the effects of market volatilities on Apyx Medical and DexCom 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 Apyx Medical with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and DexCom.
Diversification Opportunities for Apyx Medical and DexCom
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apyx and DexCom is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Apyx Medical 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 Apyx Medical are associated (or correlated) with DexCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DexCom Inc has no effect on the direction of Apyx Medical i.e., Apyx Medical and DexCom go up and down completely randomly.
Pair Corralation between Apyx Medical and DexCom
Given the investment horizon of 90 days Apyx Medical is expected to generate 2.77 times more return on investment than DexCom. However, Apyx Medical is 2.77 times more volatile than DexCom Inc. It trades about 0.11 of its potential returns per unit of risk. DexCom Inc is currently generating about 0.11 per unit of risk. If you would invest 117.00 in Apyx Medical on September 22, 2024 and sell it today you would earn a total of 40.00 from holding Apyx Medical or generate 34.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical vs. DexCom Inc
Performance |
| Timeline |
| Apyx Medical |
| DexCom Inc |
Apyx Medical and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and DexCom
The main advantage of trading using opposite Apyx Medical and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, DexCom 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 DexCom will offset losses from the drop in DexCom's long position.| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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