Correlation Between IQVIA Holdings and DexCom
Can any of the company-specific risk be diversified away by investing in both IQVIA Holdings 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 IQVIA Holdings and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQVIA Holdings and DexCom Inc, you can compare the effects of market volatilities on IQVIA Holdings 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 IQVIA Holdings with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQVIA Holdings and DexCom.
Diversification Opportunities for IQVIA Holdings and DexCom
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IQVIA and DexCom is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding IQVIA Holdings and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and IQVIA Holdings 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 IQVIA 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 IQVIA Holdings i.e., IQVIA Holdings and DexCom go up and down completely randomly.
Pair Corralation between IQVIA Holdings and DexCom
Assuming the 90 days horizon IQVIA Holdings is expected to under-perform the DexCom. In addition to that, IQVIA Holdings is 1.19 times more volatile than DexCom Inc. It trades about -0.04 of its total potential returns per unit of risk. DexCom Inc is currently generating about 0.05 per unit of volatility. If you would invest 7,002 in DexCom Inc on August 26, 2024 and sell it today you would earn a total of 128.00 from holding DexCom Inc or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IQVIA Holdings vs. DexCom Inc
Performance |
| Timeline |
| IQVIA Holdings |
| DexCom Inc |
IQVIA Holdings and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQVIA Holdings and DexCom
The main advantage of trading using opposite IQVIA Holdings and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQVIA Holdings 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.| IQVIA Holdings vs. FLOW TRADERS LTD | IQVIA Holdings vs. VIVA WINE GROUP | IQVIA Holdings vs. SIDETRADE EO 1 | IQVIA Holdings vs. Globe Trade Centre |
| DexCom vs. Superior Plus Corp | DexCom vs. Origin Agritech | DexCom vs. Identiv | DexCom vs. INTUITIVE SURGICAL |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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