Correlation Between DexCom and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both DexCom and Siemens Healthineers 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 Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and Siemens Healthineers AG, you can compare the effects of market volatilities on DexCom and Siemens Healthineers 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 Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Siemens Healthineers.
Diversification Opportunities for DexCom and Siemens Healthineers
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DexCom and Siemens is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers 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 Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of DexCom i.e., DexCom and Siemens Healthineers go up and down completely randomly.
Pair Corralation between DexCom and Siemens Healthineers
Given the investment horizon of 90 days DexCom Inc is expected to generate 1.48 times more return on investment than Siemens Healthineers. However, DexCom is 1.48 times more volatile than Siemens Healthineers AG. It trades about 0.27 of its potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.05 per unit of risk. If you would invest 7,031 in DexCom Inc on September 12, 2024 and sell it today you would earn a total of 1,016 from holding DexCom Inc or generate 14.45% 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. Siemens Healthineers AG
Performance |
| Timeline |
| DexCom Inc |
| Siemens Healthineers |
DexCom and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Siemens Healthineers
The main advantage of trading using opposite DexCom and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Siemens Healthineers 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 Siemens Healthineers will offset losses from the drop in Siemens Healthineers' long position.| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
| Siemens Healthineers vs. Artivion | Siemens Healthineers vs. Anika Therapeutics | Siemens Healthineers vs. Sight Sciences | Siemens Healthineers vs. Orthofix Medical |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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