Correlation Between Modine Manufacturing and 26875PAN1
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By analyzing existing cross correlation between Modine Manufacturing and EOG RES INC, you can compare the effects of market volatilities on Modine Manufacturing and 26875PAN1 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 26875PAN1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and 26875PAN1.
Diversification Opportunities for Modine Manufacturing and 26875PAN1
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Modine and 26875PAN1 is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and EOG RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOG RES INC 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 26875PAN1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOG RES INC has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and 26875PAN1 go up and down completely randomly.
Pair Corralation between Modine Manufacturing and 26875PAN1
Considering the 90-day investment horizon Modine Manufacturing is expected to under-perform the 26875PAN1. In addition to that, Modine Manufacturing is 10.02 times more volatile than EOG RES INC. It trades about -0.24 of its total potential returns per unit of risk. EOG RES INC is currently generating about 0.23 per unit of volatility. If you would invest 8,882 in EOG RES INC on December 4, 2024 and sell it today you would earn a total of 193.00 from holding EOG RES INC or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Modine Manufacturing vs. EOG RES INC
Performance |
| Timeline |
| Modine Manufacturing |
| EOG RES INC |
Modine Manufacturing and 26875PAN1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and 26875PAN1
The main advantage of trading using opposite Modine Manufacturing and 26875PAN1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, 26875PAN1 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 26875PAN1 will offset losses from the drop in 26875PAN1's long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
| 26875PAN1 vs. Bridgford Foods | 26875PAN1 vs. Fomento Economico Mexicano | 26875PAN1 vs. Chester Mining | 26875PAN1 vs. Astral Foods Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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