Correlation Between Modine Manufacturing and 05565QDH8
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By analyzing existing cross correlation between Modine Manufacturing and BP CAP MKTS, you can compare the effects of market volatilities on Modine Manufacturing and 05565QDH8 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 05565QDH8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and 05565QDH8.
Diversification Opportunities for Modine Manufacturing and 05565QDH8
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Modine and 05565QDH8 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and BP CAP MKTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BP CAP MKTS 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 05565QDH8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BP CAP MKTS has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and 05565QDH8 go up and down completely randomly.
Pair Corralation between Modine Manufacturing and 05565QDH8
Considering the 90-day investment horizon Modine Manufacturing is expected to under-perform the 05565QDH8. In addition to that, Modine Manufacturing is 12.03 times more volatile than BP CAP MKTS. It trades about -0.09 of its total potential returns per unit of risk. BP CAP MKTS is currently generating about -0.33 per unit of volatility. If you would invest 9,702 in BP CAP MKTS on October 9, 2024 and sell it today you would lose (151.00) from holding BP CAP MKTS or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Modine Manufacturing vs. BP CAP MKTS
Performance |
| Timeline |
| Modine Manufacturing |
| BP CAP MKTS |
Modine Manufacturing and 05565QDH8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and 05565QDH8
The main advantage of trading using opposite Modine Manufacturing and 05565QDH8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, 05565QDH8 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 05565QDH8 will offset losses from the drop in 05565QDH8's long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
| 05565QDH8 vs. AEP TEX INC | 05565QDH8 vs. US BANK NATIONAL | 05565QDH8 vs. Design Therapeutics | 05565QDH8 vs. Jfrog |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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