Correlation Between Modine Manufacturing and 25179MBE2
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By analyzing existing cross correlation between Modine Manufacturing and DVN 5875 15 JUN 28, you can compare the effects of market volatilities on Modine Manufacturing and 25179MBE2 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 25179MBE2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and 25179MBE2.
Diversification Opportunities for Modine Manufacturing and 25179MBE2
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Modine and 25179MBE2 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and DVN 5875 15 JUN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DVN 5875 15 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 25179MBE2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DVN 5875 15 has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and 25179MBE2 go up and down completely randomly.
Pair Corralation between Modine Manufacturing and 25179MBE2
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 8.01 times more return on investment than 25179MBE2. However, Modine Manufacturing is 8.01 times more volatile than DVN 5875 15 JUN 28. It trades about 0.1 of its potential returns per unit of risk. DVN 5875 15 JUN 28 is currently generating about 0.02 per unit of risk. If you would invest 11,081 in Modine Manufacturing on September 12, 2024 and sell it today you would earn a total of 2,069 from holding Modine Manufacturing or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.19% |
| Values | Daily Returns |
Modine Manufacturing vs. DVN 5875 15 JUN 28
Performance |
| Timeline |
| Modine Manufacturing |
| DVN 5875 15 |
Modine Manufacturing and 25179MBE2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and 25179MBE2
The main advantage of trading using opposite Modine Manufacturing and 25179MBE2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, 25179MBE2 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 25179MBE2 will offset losses from the drop in 25179MBE2's long position.| Modine Manufacturing vs. Ford Motor | Modine Manufacturing vs. General Motors | Modine Manufacturing vs. Goodyear Tire Rubber | Modine Manufacturing vs. Li Auto |
| 25179MBE2 vs. Old Dominion Freight | 25179MBE2 vs. Hafnia Limited | 25179MBE2 vs. Stepan Company | 25179MBE2 vs. PennantPark Floating Rate |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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