Correlation Between Modine Manufacturing and Osprey Solana
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and Osprey Solana 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 Osprey Solana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and Osprey Solana Trust, you can compare the effects of market volatilities on Modine Manufacturing and Osprey Solana 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 Osprey Solana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Osprey Solana.
Diversification Opportunities for Modine Manufacturing and Osprey Solana
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Modine and Osprey is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Osprey Solana Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osprey Solana Trust 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 Osprey Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osprey Solana Trust has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Osprey Solana go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Osprey Solana
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 1.44 times more return on investment than Osprey Solana. However, Modine Manufacturing is 1.44 times more volatile than Osprey Solana Trust. It trades about -0.11 of its potential returns per unit of risk. Osprey Solana Trust is currently generating about -0.23 per unit of risk. If you would invest 12,278 in Modine Manufacturing on November 5, 2024 and sell it today you would lose (2,133) from holding Modine Manufacturing or give up 17.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modine Manufacturing vs. Osprey Solana Trust
Performance |
| Timeline |
| Modine Manufacturing |
| Osprey Solana Trust |
Modine Manufacturing and Osprey Solana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Osprey Solana
The main advantage of trading using opposite Modine Manufacturing and Osprey Solana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, Osprey Solana 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 Osprey Solana will offset losses from the drop in Osprey Solana's long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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