Correlation Between Modine Manufacturing and FDG Electric
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and FDG Electric 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 FDG Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and FDG Electric Vehicles, you can compare the effects of market volatilities on Modine Manufacturing and FDG Electric 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 FDG Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and FDG Electric.
Diversification Opportunities for Modine Manufacturing and FDG Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Modine and FDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and FDG Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDG Electric Vehicles 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 FDG Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDG Electric Vehicles has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and FDG Electric go up and down completely randomly.
Pair Corralation between Modine Manufacturing and FDG Electric
If you would invest 13,106 in Modine Manufacturing on August 28, 2024 and sell it today you would earn a total of 634.00 from holding Modine Manufacturing or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Modine Manufacturing vs. FDG Electric Vehicles
Performance |
| Timeline |
| Modine Manufacturing |
| FDG Electric Vehicles |
Modine Manufacturing and FDG Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and FDG Electric
The main advantage of trading using opposite Modine Manufacturing and FDG Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, FDG Electric 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 FDG Electric will offset losses from the drop in FDG Electric's long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Lear Corporation | FDG Electric vs. BorgWarner |
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.
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