Correlation Between Modine Manufacturing and Illumin Holdings
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and Illumin Holdings 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 Illumin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and illumin Holdings, you can compare the effects of market volatilities on Modine Manufacturing and Illumin Holdings 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 Illumin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Illumin Holdings.
Diversification Opportunities for Modine Manufacturing and Illumin Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Modine and Illumin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and illumin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on illumin Holdings 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 Illumin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of illumin Holdings has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Illumin Holdings go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Illumin Holdings
If you would invest 11,777 in Modine Manufacturing on September 1, 2024 and sell it today you would earn a total of 1,802 from holding Modine Manufacturing or generate 15.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Modine Manufacturing vs. illumin Holdings
Performance |
| Timeline |
| Modine Manufacturing |
| illumin Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Modine Manufacturing and Illumin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Illumin Holdings
The main advantage of trading using opposite Modine Manufacturing and Illumin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, Illumin Holdings 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 Illumin Holdings will offset losses from the drop in Illumin Holdings' long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
| Illumin Holdings vs. CAVA Group, | Illumin Holdings vs. Modine Manufacturing | Illumin Holdings vs. Dana Inc | Illumin Holdings vs. Yum Brands |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |