Correlation Between Modine Manufacturing and 98388MAB3

Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and 98388MAB3 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 Modine Manufacturing and 98388MAB3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Modine Manufacturing and XEL 175 15 MAR 27, you can compare the effects of market volatilities on Modine Manufacturing and 98388MAB3 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 98388MAB3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and 98388MAB3.

Diversification Opportunities for Modine Manufacturing and 98388MAB3

-0.17

Correlation Coefficient

Modine Manufacturing  98388MAB3

Good diversification

The 3 months correlation between Modine and 98388MAB3 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and XEL 175 15 MAR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XEL 175 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 98388MAB3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XEL 175 15 has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and 98388MAB3 go up and down completely randomly.

Pair Corralation between Modine Manufacturing and 98388MAB3

Considering the 90-day investment horizon Modine Manufacturing is expected to generate 2.51 times more return on investment than 98388MAB3. However, Modine Manufacturing is 2.51 times more volatile than XEL 175 15 MAR 27. It trades about 0.05 of its potential returns per unit of risk. XEL 175 15 MAR 27 is currently generating about 0.01 per unit of risk. If you would invest  13,106  in Modine Manufacturing on October 27, 2024 and sell it today you would earn a total of  894.00  from holding Modine Manufacturing or generate 6.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	73.33%
Values	Daily Returns

Modine Manufacturing  vs.  XEL 175 15 MAR 27

Modine Manufacturing

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Modine Manufacturing are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Modine Manufacturing may actually be approaching a critical reversion point that can send shares even higher in February 2025.

XEL 175 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XEL 175 15 MAR 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 98388MAB3 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Modine Manufacturing and 98388MAB3

The main advantage of trading using opposite Modine Manufacturing and 98388MAB3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, 98388MAB3 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 98388MAB3 will offset losses from the drop in 98388MAB3's long position.

The idea behind Modine Manufacturing and XEL 175 15 MAR 27 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .