Correlation Between Modine Manufacturing and 22550L2M2
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By analyzing existing cross correlation between Modine Manufacturing and CS 75 15 FEB 28, you can compare the effects of market volatilities on Modine Manufacturing and 22550L2M2 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 22550L2M2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and 22550L2M2.
Diversification Opportunities for Modine Manufacturing and 22550L2M2
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Modine and 22550L2M2 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and CS 75 15 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22550L2M2 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 22550L2M2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22550L2M2 has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and 22550L2M2 go up and down completely randomly.
Pair Corralation between Modine Manufacturing and 22550L2M2
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 19.86 times more return on investment than 22550L2M2. However, Modine Manufacturing is 19.86 times more volatile than CS 75 15 FEB 28. It trades about 0.29 of its potential returns per unit of risk. CS 75 15 FEB 28 is currently generating about 0.03 per unit of risk. If you would invest 10,977 in Modine Manufacturing on September 4, 2024 and sell it today you would earn a total of 2,797 from holding Modine Manufacturing or generate 25.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Modine Manufacturing vs. CS 75 15 FEB 28
Performance |
| Timeline |
| Modine Manufacturing |
| 22550L2M2 |
Modine Manufacturing and 22550L2M2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and 22550L2M2
The main advantage of trading using opposite Modine Manufacturing and 22550L2M2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, 22550L2M2 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 22550L2M2 will offset losses from the drop in 22550L2M2's long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
| 22550L2M2 vs. Modine Manufacturing | 22550L2M2 vs. Warner Music Group | 22550L2M2 vs. Cars Inc | 22550L2M2 vs. Lucid Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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