Correlation Between China Power and Modine Manufacturing
Can any of the company-specific risk be diversified away by investing in both China Power and Modine Manufacturing 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 China Power and Modine Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Power Equipment and Modine Manufacturing, you can compare the effects of market volatilities on China Power and Modine Manufacturing 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 China Power with a short position of Modine Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Power and Modine Manufacturing.
Diversification Opportunities for China Power and Modine Manufacturing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Modine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Power Equipment and Modine Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modine Manufacturing and China Power 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 China Power Equipment are associated (or correlated) with Modine Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modine Manufacturing has no effect on the direction of China Power i.e., China Power and Modine Manufacturing go up and down completely randomly.
Pair Corralation between China Power and Modine Manufacturing
If you would invest 0.52 in China Power Equipment on November 3, 2024 and sell it today you would earn a total of 0.00 from holding China Power Equipment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Power Equipment vs. Modine Manufacturing
Performance |
| Timeline |
| China Power Equipment |
| Modine Manufacturing |
China Power and Modine Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Power and Modine Manufacturing
The main advantage of trading using opposite China Power and Modine Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Power position performs unexpectedly, Modine Manufacturing 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 Modine Manufacturing will offset losses from the drop in Modine Manufacturing's long position.| China Power vs. Vornado Realty Trust | China Power vs. Orion Office Reit | China Power vs. Invitation Homes | China Power vs. Addus HomeCare |
| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |