Correlation Between Integra LifeSciences and DexCom
Can any of the company-specific risk be diversified away by investing in both Integra LifeSciences 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 Integra LifeSciences and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra LifeSciences Holdings and DexCom Inc, you can compare the effects of market volatilities on Integra LifeSciences 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 Integra LifeSciences with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra LifeSciences and DexCom.
Diversification Opportunities for Integra LifeSciences and DexCom
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integra and DexCom is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Integra LifeSciences Holdings and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Integra LifeSciences 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 Integra LifeSciences 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 Integra LifeSciences i.e., Integra LifeSciences and DexCom go up and down completely randomly.
Pair Corralation between Integra LifeSciences and DexCom
Given the investment horizon of 90 days Integra LifeSciences Holdings is expected to generate 1.16 times more return on investment than DexCom. However, Integra LifeSciences is 1.16 times more volatile than DexCom Inc. It trades about 0.24 of its potential returns per unit of risk. DexCom Inc is currently generating about 0.15 per unit of risk. If you would invest 2,180 in Integra LifeSciences Holdings on October 21, 2024 and sell it today you would earn a total of 230.00 from holding Integra LifeSciences Holdings or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra LifeSciences Holdings vs. DexCom Inc
Performance |
| Timeline |
| Integra LifeSciences |
| DexCom Inc |
Integra LifeSciences and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra LifeSciences and DexCom
The main advantage of trading using opposite Integra LifeSciences and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra LifeSciences 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.| Integra LifeSciences vs. ICU Medical | Integra LifeSciences vs. CONMED | Integra LifeSciences vs. Haemonetics | Integra LifeSciences vs. Merit Medical Systems |
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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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