Correlation Between Modine Manufacturing and Abacus Life,
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and Abacus Life, 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 Modine Manufacturing and Abacus Life, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and Abacus Life, 9875, you can compare the effects of market volatilities on Modine Manufacturing and Abacus Life, 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 Modine Manufacturing with a short position of Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Abacus Life,.
Diversification Opportunities for Modine Manufacturing and Abacus Life,
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Modine and Abacus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 and Modine Manufacturing 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 Modine Manufacturing are associated (or correlated) with Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Abacus Life, go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Abacus Life,
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 4.4 times more return on investment than Abacus Life,. However, Modine Manufacturing is 4.4 times more volatile than Abacus Life, 9875. It trades about 0.12 of its potential returns per unit of risk. Abacus Life, 9875 is currently generating about 0.08 per unit of risk. If you would invest 13,106 in Modine Manufacturing on August 27, 2024 and sell it today you would earn a total of 1,216 from holding Modine Manufacturing or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modine Manufacturing vs. Abacus Life, 9875
Performance |
| Timeline |
| Modine Manufacturing |
| Abacus Life, 9875 |
Modine Manufacturing and Abacus Life, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Abacus Life,
The main advantage of trading using opposite Modine Manufacturing and Abacus Life, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, Abacus Life, 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 Abacus Life, will offset losses from the drop in Abacus Life,'s long position.The idea behind Modine Manufacturing and Abacus Life, 9875 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.| Abacus Life, vs. Xponential Fitness | Abacus Life, vs. Modine Manufacturing | Abacus Life, vs. Playtika Holding Corp | Abacus Life, vs. Aeye Inc |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |