This module allows you to analyze existing cross correlation between ResMed Inc and DexCom Inc. You can compare the effects of market volatilities on ResMed 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 ResMed with a short position of DexCom. See also your portfolio center
. Please also check ongoing floating volatility patterns of ResMed
ResMed Inc vs DexCom Inc
Considering 30-days investment horizon, ResMed Inc is expected to generate 0.25 times more return on investment than DexCom. However, ResMed Inc is 3.94 times less risky than DexCom. It trades about 0.15 of its potential returns per unit of risk. DexCom Inc is currently generating about -0.04 per unit of risk. If you would invest 8,559 in ResMed Inc on December 24, 2017 and sell it today you would earn a total of 192 from holding ResMed Inc or generate 2.24% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding ResMed Inc and DexCom Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and ResMed 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 ResMed Inc 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 ResMed i.e. ResMed and DexCom go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in ResMed Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days DexCom Inc has generated negative risk-adjusted returns adding no value to investors with long positions.