Correlation Between DexCom and Rafina Innovations
Can any of the company-specific risk be diversified away by investing in both DexCom and Rafina Innovations 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 Rafina Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and Rafina Innovations, you can compare the effects of market volatilities on DexCom and Rafina Innovations 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 Rafina Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and Rafina Innovations.
Diversification Opportunities for DexCom and Rafina Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DexCom and Rafina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Rafina Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rafina Innovations 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 Rafina Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rafina Innovations has no effect on the direction of DexCom i.e., DexCom and Rafina Innovations go up and down completely randomly.
Pair Corralation between DexCom and Rafina Innovations
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 | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DexCom Inc vs. Rafina Innovations
Performance |
| Timeline |
| DexCom Inc |
| Rafina Innovations |
DexCom and Rafina Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and Rafina Innovations
The main advantage of trading using opposite DexCom and Rafina Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Rafina Innovations 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 Rafina Innovations will offset losses from the drop in Rafina Innovations' long position.| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
| Rafina Innovations vs. LENSAR Inc | Rafina Innovations vs. Sight Sciences | Rafina Innovations vs. STRATA Skin Sciences | Rafina Innovations vs. enVVeno Medical Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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