Correlation Between SkiStar AB and Dometic Group

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

Diversification Opportunities for SkiStar AB and Dometic Group

0.0

Correlation Coefficient

SkiStar AB  Dometic Group

Pay attention - limited upside

The 3 months correlation between SkiStar and Dometic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SkiStar 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 SkiStar 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 SkiStar 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 SkiStar AB i.e., SkiStar AB and Dometic Group go up and down completely randomly.

Pair Corralation between SkiStar AB and Dometic Group

If you would invest  0.00  in SkiStar AB on October 25, 2024 and sell it today you would earn a total of  0.00  from holding SkiStar AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

SkiStar AB  vs.  Dometic Group AB

SkiStar AB

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days SkiStar AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, SkiStar AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 latest uncertain performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with SkiStar AB and Dometic Group

The main advantage of trading using opposite SkiStar AB and Dometic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SkiStar 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.

The idea behind SkiStar AB and Dometic Group AB 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..