Correlation Between Interactive Strength and DexCom

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

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

Diversification Opportunities for Interactive Strength and DexCom

0.65

Correlation Coefficient

Interactive Strength  DexCom

Poor diversification

The 3 months correlation between Interactive and DexCom is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength Common and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc and Interactive Strength 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 Interactive Strength Common 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 Interactive Strength i.e., Interactive Strength and DexCom go up and down completely randomly.

Pair Corralation between Interactive Strength and DexCom

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the DexCom. In addition to that, Interactive Strength is 1.66 times more volatile than DexCom Inc. It trades about -0.09 of its total potential returns per unit of risk. DexCom Inc is currently generating about -0.14 per unit of volatility. If you would invest  7,996  in DexCom Inc on August 14, 2025 and sell it today you would lose (2,183) from holding DexCom Inc or give up 27.3% of portfolio value over 90 days.

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

Interactive Strength Common  vs.  DexCom Inc

Interactive Strength

Risk-Adjusted Performance

Weakest

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

DexCom Inc

Risk-Adjusted Performance

Weakest

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

Pair Trading with Interactive Strength and DexCom

The main advantage of trading using opposite Interactive Strength and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Strength 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 Interactive Strength Common 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.