Correlation Between Jutal Offshore and Modine Manufacturing

Can any of the company-specific risk be diversified away by investing in both Jutal Offshore 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 Jutal Offshore and Modine Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jutal Offshore Oil and Modine Manufacturing, you can compare the effects of market volatilities on Jutal Offshore 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 Jutal Offshore with a short position of Modine Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jutal Offshore and Modine Manufacturing.

Diversification Opportunities for Jutal Offshore and Modine Manufacturing

-0.26

Correlation Coefficient

Jutal Offshore  Modine Manufacturing

Very good diversification

The 3 months correlation between Jutal and Modine is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jutal Offshore Oil and Modine Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modine Manufacturing and Jutal Offshore 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 Jutal Offshore Oil 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 Jutal Offshore i.e., Jutal Offshore and Modine Manufacturing go up and down completely randomly.

Pair Corralation between Jutal Offshore and Modine Manufacturing

If you would invest  2,081  in Jutal Offshore Oil on December 25, 2024 and sell it today you would earn a total of  0.00  from holding Jutal Offshore Oil or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Jutal Offshore Oil  vs.  Modine Manufacturing

Jutal Offshore Oil

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jutal Offshore Oil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Jutal Offshore is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Modine Manufacturing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Modine Manufacturing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Jutal Offshore and Modine Manufacturing

The main advantage of trading using opposite Jutal Offshore and Modine Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jutal Offshore 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.

The idea behind Jutal Offshore Oil and Modine Manufacturing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.