Correlation Between DexCom and Owens Minor

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

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

Diversification Opportunities for DexCom and Owens Minor

-0.01

Correlation Coefficient

DexCom  Owens Minor

Good diversification

The 3 months correlation between DexCom and Owens is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Owens Minor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Minor 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 Owens Minor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owens Minor has no effect on the direction of DexCom i.e., DexCom and Owens Minor go up and down completely randomly.

Pair Corralation between DexCom and Owens Minor

Given the investment horizon of 90 days DexCom Inc is expected to generate 0.33 times more return on investment than Owens Minor. However, DexCom Inc is 3.05 times less risky than Owens Minor. It trades about -0.08 of its potential returns per unit of risk. Owens Minor is currently generating about -0.05 per unit of risk. If you would invest  8,024  in DexCom Inc on December 27, 2024 and sell it today you would lose (1,077) from holding DexCom Inc or give up 13.42% of portfolio value over 90 days.

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

DexCom Inc  vs.  Owens Minor

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.

Owens Minor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Owens Minor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with DexCom and Owens Minor

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

The idea behind DexCom Inc and Owens Minor 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.