Correlation Between Hospital Mater and DexCom
Can any of the company-specific risk be diversified away by investing in both Hospital Mater 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 Hospital Mater and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hospital Mater Dei and DexCom Inc, you can compare the effects of market volatilities on Hospital Mater 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 Hospital Mater with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and DexCom.
Diversification Opportunities for Hospital Mater and DexCom
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hospital and DexCom is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Hospital Mater 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 Hospital Mater Dei 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 Hospital Mater i.e., Hospital Mater and DexCom go up and down completely randomly.
Pair Corralation between Hospital Mater and DexCom
Assuming the 90 days trading horizon Hospital Mater is expected to generate 4.31 times less return on investment than DexCom. In addition to that, Hospital Mater is 1.39 times more volatile than DexCom Inc. It trades about 0.02 of its total potential returns per unit of risk. DexCom Inc is currently generating about 0.13 per unit of volatility. If you would invest 830.00 in DexCom Inc on August 27, 2024 and sell it today you would earn a total of 35.00 from holding DexCom Inc or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hospital Mater Dei vs. DexCom Inc
Performance |
| Timeline |
| Hospital Mater Dei |
| DexCom Inc |
Hospital Mater and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hospital Mater and DexCom
The main advantage of trading using opposite Hospital Mater and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Mater 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.| Hospital Mater vs. Fras le SA | Hospital Mater vs. Western Digital | Hospital Mater vs. Clave Indices De | Hospital Mater vs. BTG Pactual Logstica |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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