Correlation Between Telesis Bio and DexCom
Can any of the company-specific risk be diversified away by investing in both Telesis Bio 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 Telesis Bio and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telesis Bio and DexCom Inc, you can compare the effects of market volatilities on Telesis Bio 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 Telesis Bio with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telesis Bio and DexCom.
Diversification Opportunities for Telesis Bio and DexCom
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telesis and DexCom is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Telesis Bio and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Telesis Bio 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 Telesis Bio 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 Telesis Bio i.e., Telesis Bio and DexCom go up and down completely randomly.
Pair Corralation between Telesis Bio and DexCom
If you would invest 7,031 in DexCom Inc on September 12, 2024 and sell it today you would earn a total of 1,016 from holding DexCom Inc or generate 14.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Telesis Bio vs. DexCom Inc
Performance |
| Timeline |
| Telesis Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| DexCom Inc |
Telesis Bio and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telesis Bio and DexCom
The main advantage of trading using opposite Telesis Bio and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telesis Bio 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.| Telesis Bio vs. Acme United | Telesis Bio vs. BBB Foods | Telesis Bio vs. Eastern Co | Telesis Bio vs. Vera Bradley |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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