Correlation Between Bufab Holding and Dometic Group
Can any of the company-specific risk be diversified away by investing in both Bufab Holding and Dometic 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 Bufab Holding and Dometic Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bufab Holding AB and Dometic Group AB, you can compare the effects of market volatilities on Bufab Holding and Dometic 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 Bufab Holding with a short position of Dometic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bufab Holding and Dometic Group.
Diversification Opportunities for Bufab Holding and Dometic Group
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bufab and Dometic is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bufab Holding AB and Dometic Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dometic Group AB and Bufab Holding 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 Bufab Holding AB are associated (or correlated) with Dometic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dometic Group AB has no effect on the direction of Bufab Holding i.e., Bufab Holding and Dometic Group go up and down completely randomly.
Pair Corralation between Bufab Holding and Dometic Group
Assuming the 90 days trading horizon Bufab Holding AB is expected to generate 1.09 times more return on investment than Dometic Group. However, Bufab Holding is 1.09 times more volatile than Dometic Group AB. It trades about 0.04 of its potential returns per unit of risk. Dometic Group AB is currently generating about -0.11 per unit of risk. If you would invest 38,040 in Bufab Holding AB on August 31, 2024 and sell it today you would earn a total of 2,760 from holding Bufab Holding AB or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bufab Holding AB vs. Dometic Group AB
Performance |
| Timeline |
| Bufab Holding AB |
| Dometic Group AB |
Bufab Holding and Dometic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bufab Holding and Dometic Group
The main advantage of trading using opposite Bufab Holding and Dometic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bufab Holding position performs unexpectedly, Dometic 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 Dometic Group will offset losses from the drop in Dometic Group's long position.| Bufab Holding vs. Addtech AB | Bufab Holding vs. Indutrade AB | Bufab Holding vs. Troax Group AB | Bufab Holding vs. Beijer Ref AB |
| Dometic Group vs. Thule Group AB | Dometic Group vs. Husqvarna AB | Dometic Group vs. Trelleborg AB | Dometic Group vs. Essity AB |
Check out your portfolio center.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |