Yes, all of that is correct.
You can use sin only in the object part of a sentence, not in the subject part. In this sentence you can use sin after och in the subject part, as both hund and katt are grammatical objects:
hon går med sin hund och sin katt – she walks with her dog and cat
But here both hon and hund are subjects:
hon och hennes hund går sin vanliga promenad
she and her dog go their usual walk