Correlation Between Modine Manufacturing and BOEING
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By analyzing existing cross correlation between Modine Manufacturing and BOEING CO, you can compare the effects of market volatilities on Modine Manufacturing and BOEING 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 BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and BOEING.
Diversification Opportunities for Modine Manufacturing and BOEING
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Modine and BOEING is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO 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 BOEING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CO has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and BOEING go up and down completely randomly.
Pair Corralation between Modine Manufacturing and BOEING
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 2.47 times more return on investment than BOEING. However, Modine Manufacturing is 2.47 times more volatile than BOEING CO. It trades about 0.0 of its potential returns per unit of risk. BOEING CO is currently generating about -0.16 per unit of risk. If you would invest 13,215 in Modine Manufacturing on September 12, 2024 and sell it today you would lose (180.00) from holding Modine Manufacturing or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modine Manufacturing vs. BOEING CO
Performance |
| Timeline |
| Modine Manufacturing |
| BOEING CO |
Modine Manufacturing and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and BOEING
The main advantage of trading using opposite Modine Manufacturing and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, BOEING 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 BOEING will offset losses from the drop in BOEING's long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. Stoneridge | Modine Manufacturing vs. Dorman Products |
| BOEING vs. National Beverage Corp | BOEING vs. FitLife Brands, Common | BOEING vs. Air Lease | BOEING vs. Global Ship Lease |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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