Correlation Between DexCom and Thermogenesis Holdings
Can any of the company-specific risk be diversified away by investing in both DexCom and Thermogenesis 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 Thermogenesis 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 Thermogenesis Holdings, you can compare the effects of market volatilities on DexCom and Thermogenesis 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 Thermogenesis Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Thermogenesis Holdings.
Diversification Opportunities for DexCom and Thermogenesis Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DexCom and Thermogenesis is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Thermogenesis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermogenesis 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 Thermogenesis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermogenesis Holdings has no effect on the direction of DexCom i.e., DexCom and Thermogenesis Holdings go up and down completely randomly.
Pair Corralation between DexCom and Thermogenesis Holdings
Given the investment horizon of 90 days DexCom Inc is expected to generate 0.46 times more return on investment than Thermogenesis Holdings. However, DexCom Inc is 2.18 times less risky than Thermogenesis Holdings. It trades about -0.01 of its potential returns per unit of risk. Thermogenesis Holdings is currently generating about -0.05 per unit of risk. If you would invest 10,468 in DexCom Inc on September 12, 2024 and sell it today you would lose (2,527) from holding DexCom Inc or give up 24.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 63.14% |
| Values | Daily Returns |
DexCom Inc vs. Thermogenesis Holdings
Performance |
| Timeline |
| DexCom Inc |
| Thermogenesis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DexCom and Thermogenesis Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Thermogenesis Holdings
The main advantage of trading using opposite DexCom and Thermogenesis Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Thermogenesis 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 Thermogenesis Holdings will offset losses from the drop in Thermogenesis Holdings' long position.| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
| Thermogenesis Holdings vs. Tivic Health Systems | Thermogenesis Holdings vs. Bluejay Diagnostics | Thermogenesis Holdings vs. Heart Test Laboratories | Thermogenesis Holdings vs. Nuwellis |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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