Correlation Between Dometic Group and Inwido AB

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

Diversification Opportunities for Dometic Group and Inwido AB

0.13

Correlation Coefficient

Dometic Group  Inwido AB

Average diversification

The 3 months correlation between Dometic and Inwido is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dometic Group AB and Inwido AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inwido 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 Inwido AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inwido AB has no effect on the direction of Dometic Group i.e., Dometic Group and Inwido AB go up and down completely randomly.

Pair Corralation between Dometic Group and Inwido AB

Assuming the 90 days trading horizon Dometic Group AB is expected to generate 1.59 times more return on investment than Inwido AB. However, Dometic Group is 1.59 times more volatile than Inwido AB. It trades about 0.21 of its potential returns per unit of risk. Inwido AB is currently generating about -0.01 per unit of risk. If you would invest  3,278  in Dometic Group AB on April 21, 2025 and sell it today you would earn a total of  1,568  from holding Dometic Group AB or generate 47.83% 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.  Inwido 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 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Dometic Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Inwido AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inwido AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Inwido AB 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 Inwido AB

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

The idea behind Dometic Group AB and Inwido 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.