Correlation Between DexCom and FUJIFILM Holdings
Can any of the company-specific risk be diversified away by investing in both DexCom and FUJIFILM Holdings 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 FUJIFILM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and FUJIFILM Holdings, you can compare the effects of market volatilities on DexCom and FUJIFILM Holdings 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 FUJIFILM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and FUJIFILM Holdings.
Diversification Opportunities for DexCom and FUJIFILM Holdings
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DexCom and FUJIFILM is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and FUJIFILM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIFILM Holdings 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 FUJIFILM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIFILM Holdings has no effect on the direction of DexCom i.e., DexCom and FUJIFILM Holdings go up and down completely randomly.
Pair Corralation between DexCom and FUJIFILM Holdings
Given the investment horizon of 90 days DexCom Inc is expected to generate 0.6 times more return on investment than FUJIFILM Holdings. However, DexCom Inc is 1.67 times less risky than FUJIFILM Holdings. It trades about 0.1 of its potential returns per unit of risk. FUJIFILM Holdings is currently generating about -0.05 per unit of risk. If you would invest 7,236 in DexCom Inc on November 2, 2024 and sell it today you would earn a total of 1,526 from holding DexCom Inc or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DexCom Inc vs. FUJIFILM Holdings
Performance |
| Timeline |
| DexCom Inc |
| FUJIFILM Holdings |
DexCom and FUJIFILM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and FUJIFILM Holdings
The main advantage of trading using opposite DexCom and FUJIFILM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, FUJIFILM Holdings 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 FUJIFILM Holdings will offset losses from the drop in FUJIFILM Holdings' long position.| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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