Correlation Between DexCom and Daxor
Can any of the company-specific risk be diversified away by investing in both DexCom and Daxor 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 Daxor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and Daxor, you can compare the effects of market volatilities on DexCom and Daxor 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 Daxor. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Daxor.
Diversification Opportunities for DexCom and Daxor
Very good diversification
The 3 months correlation between DexCom and Daxor is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor 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 Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of DexCom i.e., DexCom and Daxor go up and down completely randomly.
Pair Corralation between DexCom and Daxor
Given the investment horizon of 90 days DexCom Inc is expected to generate 0.96 times more return on investment than Daxor. However, DexCom Inc is 1.04 times less risky than Daxor. It trades about 0.25 of its potential returns per unit of risk. Daxor is currently generating about 0.1 per unit of risk. If you would invest 7,582 in DexCom Inc on October 20, 2024 and sell it today you would earn a total of 856.00 from holding DexCom Inc or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DexCom Inc vs. Daxor
Performance |
| Timeline |
| DexCom Inc |
| Daxor |
DexCom and Daxor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Daxor
The main advantage of trading using opposite DexCom and Daxor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Daxor 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 Daxor will offset losses from the drop in Daxor's long position.| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
| Daxor vs. InfuSystems Holdings | Daxor vs. Meihua International Medical | Daxor vs. Repro Med Systems | Daxor vs. LeMaitre Vascular |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world |