Correlation Between Modine Manufacturing and Powered Brands
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and Powered Brands 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 Powered Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and Powered Brands, you can compare the effects of market volatilities on Modine Manufacturing and Powered Brands 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 Powered Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Powered Brands.
Diversification Opportunities for Modine Manufacturing and Powered Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Modine and Powered is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Powered Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powered Brands 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 Powered Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powered Brands has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Powered Brands go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Powered Brands
If you would invest 7,318 in Modine Manufacturing on November 5, 2024 and sell it today you would earn a total of 2,329 from holding Modine Manufacturing or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Modine Manufacturing vs. Powered Brands
Performance |
| Timeline |
| Modine Manufacturing |
| Powered Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Modine Manufacturing and Powered Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Powered Brands
The main advantage of trading using opposite Modine Manufacturing and Powered Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, Powered Brands 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 Powered Brands will offset losses from the drop in Powered Brands' long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
| Powered Brands vs. Coda Octopus Group | Powered Brands vs. Antero Midstream Partners | Powered Brands vs. WEC Energy Group | Powered Brands vs. Atmos Energy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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