Correlation Between DexCom and Aethlon Medical
Can any of the company-specific risk be diversified away by investing in both DexCom and Aethlon Medical 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 Aethlon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and Aethlon Medical, you can compare the effects of market volatilities on DexCom and Aethlon Medical 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 Aethlon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Aethlon Medical.
Diversification Opportunities for DexCom and Aethlon Medical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DexCom and Aethlon is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Aethlon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aethlon Medical 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 Aethlon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aethlon Medical has no effect on the direction of DexCom i.e., DexCom and Aethlon Medical go up and down completely randomly.
Pair Corralation between DexCom and Aethlon Medical
Given the investment horizon of 90 days DexCom Inc is expected to generate 0.97 times more return on investment than Aethlon Medical. However, DexCom Inc is 1.03 times less risky than Aethlon Medical. It trades about 0.05 of its potential returns per unit of risk. Aethlon Medical is currently generating about -0.09 per unit of risk. If you would invest 7,627 in DexCom Inc on September 19, 2024 and sell it today you would earn a total of 153.00 from holding DexCom Inc or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DexCom Inc vs. Aethlon Medical
Performance |
| Timeline |
| DexCom Inc |
| Aethlon Medical |
DexCom and Aethlon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Aethlon Medical
The main advantage of trading using opposite DexCom and Aethlon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Aethlon Medical 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 Aethlon Medical will offset losses from the drop in Aethlon Medical's long position.| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical 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 Stocks Directory module to find actively traded stocks across global markets.
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