Correlation Between EUDA Health and DexCom
Can any of the company-specific risk be diversified away by investing in both EUDA Health and DexCom 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 EUDA Health and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EUDA Health Holdings and DexCom Inc, you can compare the effects of market volatilities on EUDA Health and DexCom 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 EUDA Health with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and DexCom.
Diversification Opportunities for EUDA Health and DexCom
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EUDA and DexCom is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and EUDA Health 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 EUDA Health Holdings are associated (or correlated) with DexCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DexCom Inc has no effect on the direction of EUDA Health i.e., EUDA Health and DexCom go up and down completely randomly.
Pair Corralation between EUDA Health and DexCom
Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 2.09 times more return on investment than DexCom. However, EUDA Health is 2.09 times more volatile than DexCom Inc. It trades about 0.08 of its potential returns per unit of risk. DexCom Inc is currently generating about -0.02 per unit of risk. If you would invest 148.00 in EUDA Health Holdings on August 31, 2024 and sell it today you would earn a total of 295.00 from holding EUDA Health Holdings or generate 199.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EUDA Health Holdings vs. DexCom Inc
Performance |
| Timeline |
| EUDA Health Holdings |
| DexCom Inc |
EUDA Health and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EUDA Health and DexCom
The main advantage of trading using opposite EUDA Health and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, DexCom 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 DexCom will offset losses from the drop in DexCom's long position.| EUDA Health vs. Healthcare Triangle | EUDA Health vs. Bullfrog AI Holdings, | EUDA Health vs. Mangoceuticals, Common Stock | EUDA Health vs. FOXO Technologies |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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