Correlation Between Vivos Therapeutics and DexCom
Can any of the company-specific risk be diversified away by investing in both Vivos Therapeutics 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 Therapeutics and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivos Therapeutics and DexCom Inc, you can compare the effects of market volatilities on Vivos Therapeutics 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 Therapeutics with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivos Therapeutics and DexCom.
Diversification Opportunities for Vivos Therapeutics and DexCom
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vivos and DexCom is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Therapeutics and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Vivos Therapeutics 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 Therapeutics 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 Therapeutics i.e., Vivos Therapeutics and DexCom go up and down completely randomly.
Pair Corralation between Vivos Therapeutics and DexCom
Given the investment horizon of 90 days Vivos Therapeutics is expected to generate 12.95 times more return on investment than DexCom. However, Vivos Therapeutics is 12.95 times more volatile than DexCom Inc. It trades about 0.04 of its potential returns per unit of risk. DexCom Inc is currently generating about -0.01 per unit of risk. If you would invest 1,005 in Vivos Therapeutics on September 20, 2024 and sell it today you would lose (515.00) from holding Vivos Therapeutics or give up 51.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivos Therapeutics vs. DexCom Inc
Performance |
| Timeline |
| Vivos Therapeutics |
| DexCom Inc |
Vivos Therapeutics and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivos Therapeutics and DexCom
The main advantage of trading using opposite Vivos Therapeutics and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivos Therapeutics 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 Therapeutics vs. Avita Medical | Vivos Therapeutics vs. Inogen Inc | Vivos Therapeutics vs. Apyx Medical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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