Correlation Between Modine Manufacturing and 701094AR5
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By analyzing existing cross correlation between Modine Manufacturing and PH 425 15 SEP 27, you can compare the effects of market volatilities on Modine Manufacturing and 701094AR5 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 701094AR5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and 701094AR5.
Diversification Opportunities for Modine Manufacturing and 701094AR5
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Modine and 701094AR5 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and PH 425 15 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH 425 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 701094AR5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH 425 15 has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and 701094AR5 go up and down completely randomly.
Pair Corralation between Modine Manufacturing and 701094AR5
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 10.96 times more return on investment than 701094AR5. However, Modine Manufacturing is 10.96 times more volatile than PH 425 15 SEP 27. It trades about 0.11 of its potential returns per unit of risk. PH 425 15 SEP 27 is currently generating about -0.02 per unit of risk. If you would invest 5,184 in Modine Manufacturing on September 14, 2024 and sell it today you would earn a total of 8,029 from holding Modine Manufacturing or generate 154.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.88% |
| Values | Daily Returns |
Modine Manufacturing vs. PH 425 15 SEP 27
Performance |
| Timeline |
| Modine Manufacturing |
| PH 425 15 |
Modine Manufacturing and 701094AR5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and 701094AR5
The main advantage of trading using opposite Modine Manufacturing and 701094AR5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, 701094AR5 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 701094AR5 will offset losses from the drop in 701094AR5's long position.| Modine Manufacturing vs. Ford Motor | Modine Manufacturing vs. General Motors | Modine Manufacturing vs. Goodyear Tire Rubber | Modine Manufacturing vs. Li Auto |
| 701094AR5 vs. Park Ohio Holdings | 701094AR5 vs. CECO Environmental Corp | 701094AR5 vs. RBC Bearings Incorporated | 701094AR5 vs. Modine Manufacturing |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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