Correlation Between Dometic Group and Bure Equity

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

Diversification Opportunities for Dometic Group and Bure Equity

-0.14

Correlation Coefficient

Dometic Group  Bure Equity

Good diversification

The 3 months correlation between Dometic and Bure is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dometic Group AB and Bure Equity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bure Equity 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 Bure Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bure Equity AB has no effect on the direction of Dometic Group i.e., Dometic Group and Bure Equity go up and down completely randomly.

Pair Corralation between Dometic Group and Bure Equity

Assuming the 90 days trading horizon Dometic Group AB is expected to generate 1.95 times more return on investment than Bure Equity. However, Dometic Group is 1.95 times more volatile than Bure Equity AB. It trades about 0.19 of its potential returns per unit of risk. Bure Equity AB is currently generating about -0.04 per unit of risk. If you would invest  3,522  in Dometic Group AB on April 23, 2025 and sell it today you would earn a total of  1,430  from holding Dometic Group AB or generate 40.6% return on investment over 90 days.

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

Dometic Group AB  vs.  Bure Equity AB

Dometic Group AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dometic Group AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, Dometic Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bure Equity AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bure Equity AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bure Equity is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Dometic Group and Bure Equity

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

The idea behind Dometic Group AB and Bure Equity 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.