Correlation Between DexCom and FLDM
Can any of the company-specific risk be diversified away by investing in both DexCom and FLDM 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 DexCom and FLDM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DexCom Inc and FLDM, you can compare the effects of market volatilities on DexCom and FLDM 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 DexCom with a short position of FLDM. Check out your portfolio center. Please also check ongoing floating volatility patterns of DexCom and FLDM.
Diversification Opportunities for DexCom and FLDM
Pay attention - limited upside
The 3 months correlation between DexCom and FLDM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and FLDM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLDM and DexCom 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 DexCom Inc are associated (or correlated) with FLDM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLDM has no effect on the direction of DexCom i.e., DexCom and FLDM go up and down completely randomly.
Pair Corralation between DexCom and FLDM
If you would invest 10,179 in DexCom Inc on January 20, 2024 and sell it today you would earn a total of 2,892 from holding DexCom Inc or generate 28.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
DexCom Inc vs. FLDM
Performance |
| Timeline |
| DexCom Inc |
| FLDM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DexCom and FLDM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DexCom and FLDM
The main advantage of trading using opposite DexCom and FLDM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, FLDM 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 FLDM will offset losses from the drop in FLDM's long position.| DexCom vs. Agilent Technologies | DexCom vs. Illumina | DexCom vs. Waters | DexCom vs. Thermo Fisher Scientific |
| FLDM vs. Tidal Trust II | FLDM vs. Global X Artificial | FLDM vs. Akros Monthly Payout | FLDM vs. Innovator Laddered Allocation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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