Correlation Between DexCom and Escalon Medical
Can any of the company-specific risk be diversified away by investing in both DexCom and Escalon 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 Escalon 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 Escalon Medical Corp, you can compare the effects of market volatilities on DexCom and Escalon 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 Escalon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Escalon Medical.
Diversification Opportunities for DexCom and Escalon Medical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DexCom and Escalon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Escalon Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escalon Medical Corp 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 Escalon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escalon Medical Corp has no effect on the direction of DexCom i.e., DexCom and Escalon Medical go up and down completely randomly.
Pair Corralation between DexCom and Escalon Medical
If you would invest 7,048 in DexCom Inc on August 28, 2024 and sell it today you would earn a total of 735.00 from holding DexCom Inc or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
DexCom Inc vs. Escalon Medical Corp
Performance |
| Timeline |
| DexCom Inc |
| Escalon Medical Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DexCom and Escalon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Escalon Medical
The main advantage of trading using opposite DexCom and Escalon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Escalon 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 Escalon Medical will offset losses from the drop in Escalon Medical's long position.| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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