Correlation Between MIPS AB and Dometic Group
Can any of the company-specific risk be diversified away by investing in both MIPS AB 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 MIPS AB and Dometic Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIPS AB and Dometic Group AB, you can compare the effects of market volatilities on MIPS AB 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 MIPS AB with a short position of Dometic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIPS AB and Dometic Group.
Diversification Opportunities for MIPS AB and Dometic Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MIPS and Dometic is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding MIPS 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 MIPS AB 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 MIPS 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 MIPS AB i.e., MIPS AB and Dometic Group go up and down completely randomly.
Pair Corralation between MIPS AB and Dometic Group
Assuming the 90 days trading horizon MIPS AB is expected to under-perform the Dometic Group. In addition to that, MIPS AB is 1.08 times more volatile than Dometic Group AB. It trades about -0.1 of its total potential returns per unit of risk. Dometic Group AB is currently generating about -0.02 per unit of volatility. If you would invest 5,405 in Dometic Group AB on November 27, 2024 and sell it today you would lose (60.00) from holding Dometic Group AB or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIPS AB vs. Dometic Group AB
Performance |
| Timeline |
| MIPS AB |
| Dometic Group AB |
MIPS AB and Dometic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIPS AB and Dometic Group
The main advantage of trading using opposite MIPS AB and Dometic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIPS AB 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.| MIPS AB vs. Thule Group AB | MIPS AB vs. Sinch AB | MIPS AB vs. Hexatronic Group AB | MIPS AB vs. NIBE Industrier 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |