Correlation Between DexCom and NewGenIvf Group

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

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

Diversification Opportunities for DexCom and NewGenIvf Group

-0.44

Correlation Coefficient

DexCom  NewGenIvf Group

Very good diversification

The 3 months correlation between DexCom and NewGenIvf is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and NewGenIvf Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewGenIvf Group 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 NewGenIvf Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewGenIvf Group has no effect on the direction of DexCom i.e., DexCom and NewGenIvf Group go up and down completely randomly.

Pair Corralation between DexCom and NewGenIvf Group

Given the investment horizon of 90 days DexCom Inc is expected to generate 0.19 times more return on investment than NewGenIvf Group. However, DexCom Inc is 5.36 times less risky than NewGenIvf Group. It trades about -0.03 of its potential returns per unit of risk. NewGenIvf Group Limited is currently generating about -0.02 per unit of risk. If you would invest  12,335  in DexCom Inc on September 13, 2024 and sell it today you would lose (4,394) from holding DexCom Inc or give up 35.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	71.77%
Values	Daily Returns

DexCom Inc  vs.  NewGenIvf Group Limited

DexCom Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DexCom Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, DexCom displayed solid returns over the last few months and may actually be approaching a breakup point.

NewGenIvf Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, NewGenIvf Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DexCom and NewGenIvf Group

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

The idea behind DexCom Inc and NewGenIvf Group Limited 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.