Correlation Between Presidio Property and Modine Manufacturing
Can any of the company-specific risk be diversified away by investing in both Presidio Property and Modine Manufacturing at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Presidio Property and Modine Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and Modine Manufacturing, you can compare the effects of market volatilities on Presidio Property and Modine Manufacturing 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 Presidio Property with a short position of Modine Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and Modine Manufacturing.
Diversification Opportunities for Presidio Property and Modine Manufacturing
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Presidio and Modine is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust and Modine Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modine Manufacturing and Presidio Property 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 Presidio Property Trust are associated (or correlated) with Modine Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modine Manufacturing has no effect on the direction of Presidio Property i.e., Presidio Property and Modine Manufacturing go up and down completely randomly.
Pair Corralation between Presidio Property and Modine Manufacturing
Given the investment horizon of 90 days Presidio Property is expected to generate 19.45 times less return on investment than Modine Manufacturing. In addition to that, Presidio Property is 1.17 times more volatile than Modine Manufacturing. It trades about 0.0 of its total potential returns per unit of risk. Modine Manufacturing is currently generating about 0.09 per unit of volatility. If you would invest 9,623 in Modine Manufacturing on September 3, 2024 and sell it today you would earn a total of 4,151 from holding Modine Manufacturing or generate 43.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. Modine Manufacturing
Performance |
| Timeline |
| Presidio Property Trust |
| Modine Manufacturing |
Presidio Property and Modine Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and Modine Manufacturing
The main advantage of trading using opposite Presidio Property and Modine Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property position performs unexpectedly, Modine Manufacturing 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 Modine Manufacturing will offset losses from the drop in Modine Manufacturing's long position.| Presidio Property vs. Broadstone Net Lease | Presidio Property vs. Armada Hflr Pr | Presidio Property vs. Brightspire Capital | Presidio Property vs. Safehold |
| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |