Correlation Between Catheter Precision and DexCom
Can any of the company-specific risk be diversified away by investing in both Catheter Precision 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 Catheter Precision and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catheter Precision and DexCom Inc, you can compare the effects of market volatilities on Catheter Precision 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 Catheter Precision with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catheter Precision and DexCom.
Diversification Opportunities for Catheter Precision and DexCom
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catheter and DexCom is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Catheter Precision and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Catheter Precision 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 Catheter Precision 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 Catheter Precision i.e., Catheter Precision and DexCom go up and down completely randomly.
Pair Corralation between Catheter Precision and DexCom
Given the investment horizon of 90 days Catheter Precision is expected to under-perform the DexCom. In addition to that, Catheter Precision is 2.0 times more volatile than DexCom Inc. It trades about -0.28 of its total potential returns per unit of risk. DexCom Inc is currently generating about 0.1 per unit of volatility. If you would invest 7,488 in DexCom Inc on September 20, 2024 and sell it today you would earn a total of 292.00 from holding DexCom Inc or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catheter Precision vs. DexCom Inc
Performance |
| Timeline |
| Catheter Precision |
| DexCom Inc |
Catheter Precision and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catheter Precision and DexCom
The main advantage of trading using opposite Catheter Precision and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catheter Precision 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.| Catheter Precision vs. Ark Restaurants Corp | Catheter Precision vs. Vodka Brands Corp | Catheter Precision vs. Naked Wines plc | Catheter Precision vs. Cannae Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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