Correlation Between DexCom and Heartbeam
Can any of the company-specific risk be diversified away by investing in both DexCom and Heartbeam 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 Heartbeam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and Heartbeam, you can compare the effects of market volatilities on DexCom and Heartbeam 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 Heartbeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Heartbeam.
Diversification Opportunities for DexCom and Heartbeam
Poor diversification
The 3 months correlation between DexCom and Heartbeam is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Heartbeam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartbeam 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 Heartbeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartbeam has no effect on the direction of DexCom i.e., DexCom and Heartbeam go up and down completely randomly.
Pair Corralation between DexCom and Heartbeam
Given the investment horizon of 90 days DexCom Inc is expected to generate 1.26 times more return on investment than Heartbeam. However, DexCom is 1.26 times more volatile than Heartbeam. It trades about -0.03 of its potential returns per unit of risk. Heartbeam is currently generating about -0.36 per unit of risk. If you would invest 7,135 in DexCom Inc on January 15, 2025 and sell it today you would lose (286.00) from holding DexCom Inc or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DexCom Inc vs. Heartbeam
Performance |
| Timeline |
| DexCom Inc |
| Heartbeam |
DexCom and Heartbeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Heartbeam
The main advantage of trading using opposite DexCom and Heartbeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Heartbeam 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 Heartbeam will offset losses from the drop in Heartbeam's long position.| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
| Heartbeam vs. FOXO Technologies | Heartbeam vs. EUDA Health Holdings | Heartbeam vs. Nutex Health | Heartbeam vs. Healthcare Triangle |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |