Correlation Between St Jude and DexCom
Can any of the company-specific risk be diversified away by investing in both St Jude 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 St Jude and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Jude Medical and DexCom Inc, you can compare the effects of market volatilities on St Jude 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 St Jude with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Jude and DexCom.
Diversification Opportunities for St Jude and DexCom
Pay attention - limited upside
The 3 months correlation between STJ and DexCom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding St Jude Medical and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and St Jude 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 St Jude Medical 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 St Jude i.e., St Jude and DexCom go up and down completely randomly.
Pair Corralation between St Jude and DexCom
If you would invest (100.00) in St Jude Medical on January 26, 2024 and sell it today you would earn a total of 100.00 from holding St Jude Medical or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
St Jude Medical vs. DexCom Inc
Performance |
| Timeline |
| St Jude Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| DexCom Inc |
St Jude and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Jude and DexCom
The main advantage of trading using opposite St Jude and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Jude 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.| St Jude vs. Usio Inc | St Jude vs. Uber Technologies | St Jude vs. Willamette Valley Vineyards | St Jude vs. Arrow Electronics |
| DexCom vs. Orthopediatrics Corp | DexCom vs. iRhythm Technologies | DexCom vs. Neuropace | DexCom vs. Electromed |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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