Correlation Between Vivos and DexCom
Can any of the company-specific risk be diversified away by investing in both Vivos 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 Vivos and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivos Inc and DexCom Inc, you can compare the effects of market volatilities on Vivos 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 Vivos with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivos and DexCom.
Diversification Opportunities for Vivos and DexCom
Pay attention - limited upside
The 3 months correlation between Vivos and DexCom is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Inc and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Vivos 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 Vivos Inc 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 Vivos i.e., Vivos and DexCom go up and down completely randomly.
Pair Corralation between Vivos and DexCom
Given the investment horizon of 90 days Vivos Inc is expected to under-perform the DexCom. In addition to that, Vivos is 2.52 times more volatile than DexCom Inc. It trades about -0.22 of its total potential returns per unit of risk. DexCom Inc is currently generating about 0.04 per unit of volatility. If you would invest 7,192 in DexCom Inc on September 19, 2024 and sell it today you would earn a total of 334.00 from holding DexCom Inc or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Vivos Inc vs. DexCom Inc
Performance |
| Timeline |
| Vivos Inc |
| DexCom Inc |
Vivos and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivos and DexCom
The main advantage of trading using opposite Vivos and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivos 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.| Vivos vs. Abbott Laboratories | Vivos vs. Stryker | Vivos vs. Boston Scientific Corp | Vivos vs. Medtronic PLC |
| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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