Correlation Between Modine Manufacturing and Getty Images
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and Getty Images 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 Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and Getty Images Holdings, you can compare the effects of market volatilities on Modine Manufacturing and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Getty Images.
Diversification Opportunities for Modine Manufacturing and Getty Images
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Modine and Getty is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Getty Images go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Getty Images
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 0.85 times more return on investment than Getty Images. However, Modine Manufacturing is 1.17 times less risky than Getty Images. It trades about 0.19 of its potential returns per unit of risk. Getty Images Holdings is currently generating about 0.05 per unit of risk. If you would invest 9,227 in Modine Manufacturing on June 5, 2025 and sell it today you would earn a total of 4,168 from holding Modine Manufacturing or generate 45.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modine Manufacturing vs. Getty Images Holdings
Performance |
| Timeline |
| Modine Manufacturing |
| Getty Images Holdings |
Modine Manufacturing and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Getty Images
The main advantage of trading using opposite Modine Manufacturing and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Modine Manufacturing vs. Gentex | Modine Manufacturing vs. Autoliv | Modine Manufacturing vs. Fox Factory Holding | Modine Manufacturing vs. Dana Inc |
| Getty Images vs. Yelp Inc | Getty Images vs. Shutterstock | Getty Images vs. Match Group | Getty Images vs. Snap Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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