Correlation Between LANDSEA GREEN and DexCom

Can any of the company-specific risk be diversified away by investing in both LANDSEA GREEN 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 LANDSEA GREEN and DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LANDSEA GREEN MANAGEMENT and DexCom Inc, you can compare the effects of market volatilities on LANDSEA GREEN 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 LANDSEA GREEN with a short position of DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA GREEN and DexCom.

Diversification Opportunities for LANDSEA GREEN and DexCom

0.15

Correlation Coefficient

LANDSEA GREEN  DexCom

Average diversification

The 3 months correlation between LANDSEA and DexCom is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA GREEN MANAGEMENT and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and LANDSEA GREEN 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 LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN i.e., LANDSEA GREEN and DexCom go up and down completely randomly.

Pair Corralation between LANDSEA GREEN and DexCom

Assuming the 90 days horizon LANDSEA GREEN MANAGEMENT is expected to under-perform the DexCom. In addition to that, LANDSEA GREEN is 12.68 times more volatile than DexCom Inc. It trades about -0.15 of its total potential returns per unit of risk. DexCom Inc is currently generating about 0.03 per unit of volatility. If you would invest  8,350  in DexCom Inc on December 4, 2024 and sell it today you would earn a total of  68.00  from holding DexCom Inc or generate 0.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

LANDSEA GREEN MANAGEMENT  vs.  DexCom Inc

LANDSEA GREEN MANAGEMENT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LANDSEA GREEN MANAGEMENT are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, LANDSEA GREEN reported solid returns over the last few months and may actually be approaching a breakup point.

DexCom Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DexCom Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, DexCom may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with LANDSEA GREEN and DexCom

The main advantage of trading using opposite LANDSEA GREEN and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA GREEN 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.

The idea behind LANDSEA GREEN MANAGEMENT and DexCom Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.