Correlation Between 191216DK3 and Modine Manufacturing
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By analyzing existing cross correlation between COCA COLA CO and Modine Manufacturing, you can compare the effects of market volatilities on 191216DK3 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 191216DK3 with a short position of Modine Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of 191216DK3 and Modine Manufacturing.
Diversification Opportunities for 191216DK3 and Modine Manufacturing
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 191216DK3 and Modine is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding COCA COLA CO and Modine Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modine Manufacturing and 191216DK3 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 COCA COLA CO 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 191216DK3 i.e., 191216DK3 and Modine Manufacturing go up and down completely randomly.
Pair Corralation between 191216DK3 and Modine Manufacturing
Assuming the 90 days trading horizon COCA COLA CO is expected to under-perform the Modine Manufacturing. But the bond apears to be less risky and, when comparing its historical volatility, COCA COLA CO is 4.59 times less risky than Modine Manufacturing. The bond trades about -0.16 of its potential returns per unit of risk. The Modine Manufacturing is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13,031 in Modine Manufacturing on August 30, 2024 and sell it today you would earn a total of 306.00 from holding Modine Manufacturing or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
COCA COLA CO vs. Modine Manufacturing
Performance |
| Timeline |
| COCA A CO |
| Modine Manufacturing |
191216DK3 and Modine Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 191216DK3 and Modine Manufacturing
The main advantage of trading using opposite 191216DK3 and Modine Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 191216DK3 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.| 191216DK3 vs. Modine Manufacturing | 191216DK3 vs. Aptiv PLC | 191216DK3 vs. PACCAR Inc | 191216DK3 vs. Digi International |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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