Correlation Between Dometic Group and Mycronic Publ
Can any of the company-specific risk be diversified away by investing in both Dometic Group and Mycronic Publ 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 Dometic Group and Mycronic Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dometic Group AB and Mycronic publ AB, you can compare the effects of market volatilities on Dometic Group and Mycronic Publ 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 Dometic Group with a short position of Mycronic Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dometic Group and Mycronic Publ.
Diversification Opportunities for Dometic Group and Mycronic Publ
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dometic and Mycronic is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dometic Group AB and Mycronic publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mycronic publ AB and Dometic Group 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 Dometic Group AB are associated (or correlated) with Mycronic Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mycronic publ AB has no effect on the direction of Dometic Group i.e., Dometic Group and Mycronic Publ go up and down completely randomly.
Pair Corralation between Dometic Group and Mycronic Publ
Assuming the 90 days trading horizon Dometic Group AB is expected to generate 1.04 times more return on investment than Mycronic Publ. However, Dometic Group is 1.04 times more volatile than Mycronic publ AB. It trades about 0.17 of its potential returns per unit of risk. Mycronic publ AB is currently generating about 0.16 per unit of risk. If you would invest 5,255 in Dometic Group AB on November 5, 2024 and sell it today you would earn a total of 395.00 from holding Dometic Group AB or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dometic Group AB vs. Mycronic publ AB
Performance |
| Timeline |
| Dometic Group AB |
| Mycronic publ AB |
Dometic Group and Mycronic Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dometic Group and Mycronic Publ
The main advantage of trading using opposite Dometic Group and Mycronic Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dometic Group position performs unexpectedly, Mycronic Publ 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 Mycronic Publ will offset losses from the drop in Mycronic Publ's long position.| Dometic Group vs. Thule Group AB | Dometic Group vs. Husqvarna AB | Dometic Group vs. Trelleborg AB | Dometic Group vs. Essity AB |
| Mycronic Publ vs. Fingerprint Cards AB | Mycronic Publ vs. Stillfront Group AB | Mycronic Publ vs. Starbreeze 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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