Correlation Between DexCom and Cryoport

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

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

Diversification Opportunities for DexCom and Cryoport

0.14

Correlation Coefficient

DexCom  Cryoport

Average diversification

The 3 months correlation between DexCom and Cryoport is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Cryoport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cryoport 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 Cryoport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cryoport has no effect on the direction of DexCom i.e., DexCom and Cryoport go up and down completely randomly.

Pair Corralation between DexCom and Cryoport

Given the investment horizon of 90 days DexCom Inc is expected to under-perform the Cryoport. But the stock apears to be less risky and, when comparing its historical volatility, DexCom Inc is 3.76 times less risky than Cryoport. The stock trades about -0.08 of its potential returns per unit of risk. The Cryoport is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  785.00  in Cryoport on December 28, 2024 and sell it today you would lose (176.00) from holding Cryoport or give up 22.42% of portfolio value over 90 days.

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

DexCom Inc  vs.  Cryoport

DexCom Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days DexCom Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Cryoport

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cryoport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Cryoport is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with DexCom and Cryoport

The main advantage of trading using opposite DexCom and Cryoport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom position performs unexpectedly, Cryoport 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 Cryoport will offset losses from the drop in Cryoport's long position.

The idea behind DexCom Inc and Cryoport 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..