Correlation Between Dometic Group and Enersize

Can any of the company-specific risk be diversified away by investing in both Dometic Group and Enersize 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 Enersize 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 Enersize Oy, you can compare the effects of market volatilities on Dometic Group and Enersize 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 Enersize. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dometic Group and Enersize.

Diversification Opportunities for Dometic Group and Enersize

-0.55

Correlation Coefficient

Dometic Group  Enersize

Excellent diversification

The 3 months correlation between Dometic and Enersize is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dometic Group AB and Enersize Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersize Oy 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 Enersize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersize Oy has no effect on the direction of Dometic Group i.e., Dometic Group and Enersize go up and down completely randomly.

Pair Corralation between Dometic Group and Enersize

Assuming the 90 days trading horizon Dometic Group AB is expected to under-perform the Enersize. But the stock apears to be less risky and, when comparing its historical volatility, Dometic Group AB is 2.58 times less risky than Enersize. The stock trades about -0.13 of its potential returns per unit of risk. The Enersize Oy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  0.57  in Enersize Oy on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Enersize Oy or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Dometic Group AB  vs.  Enersize Oy

Dometic Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dometic Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Enersize Oy

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enersize Oy are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Enersize may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Dometic Group and Enersize

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

The idea behind Dometic Group AB and Enersize Oy 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.