Correlation Between DexCom and Intel
Can any of the company-specific risk be diversified away by investing in both DexCom and Intel 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 DexCom and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and Intel, you can compare the effects of market volatilities on DexCom and Intel 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 DexCom with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Intel.
Diversification Opportunities for DexCom and Intel
Very weak diversification
The 3 months correlation between DexCom and Intel is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and DexCom 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 DexCom Inc are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of DexCom i.e., DexCom and Intel go up and down completely randomly.
Pair Corralation between DexCom and Intel
Assuming the 90 days horizon DexCom Inc is expected to under-perform the Intel. In addition to that, DexCom is 1.11 times more volatile than Intel. It trades about -0.02 of its total potential returns per unit of risk. Intel is currently generating about -0.01 per unit of volatility. If you would invest 3,159 in Intel on August 26, 2024 and sell it today you would lose (826.00) from holding Intel or give up 26.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DexCom Inc vs. Intel
Performance |
| Timeline |
| DexCom Inc |
| Intel |
DexCom and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Intel
The main advantage of trading using opposite DexCom and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| DexCom vs. Superior Plus Corp | DexCom vs. Origin Agritech | DexCom vs. Identiv | DexCom vs. INTUITIVE SURGICAL |
| Intel vs. Sporttotal AG | Intel vs. SPORT LISBOA E | Intel vs. Fukuyama Transporting Co | Intel vs. Liberty Broadband |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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