Correlation Between Essity AB and Dometic Group
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By analyzing existing cross correlation between Essity AB and Dometic Group AB, you can compare the effects of market volatilities on Essity 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 Essity AB with a short position of Dometic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essity AB and Dometic Group.
Diversification Opportunities for Essity AB and Dometic Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Essity and Dometic is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Essity 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 Essity 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 Essity 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 Essity AB i.e., Essity AB and Dometic Group go up and down completely randomly.
Pair Corralation between Essity AB and Dometic Group
Assuming the 90 days trading horizon Essity AB is expected to under-perform the Dometic Group. But the stock apears to be less risky and, when comparing its historical volatility, Essity AB is 2.79 times less risky than Dometic Group. The stock trades about -0.12 of its potential returns per unit of risk. The Dometic Group AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,630 in Dometic Group AB on April 25, 2025 and sell it today you would earn a total of 1,560 from holding Dometic Group AB or generate 42.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Essity AB vs. Dometic Group AB
Performance |
Timeline |
Essity AB |
Dometic Group AB |
Essity AB and Dometic Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Essity AB and Dometic Group
The main advantage of trading using opposite Essity AB and Dometic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essity 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.Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. ASSA ABLOY AB | Essity AB vs. AB Electrolux | Essity AB vs. AB SKF |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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