Correlation Between Modine Manufacturing and Life Time
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and Life Time 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 Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and Life Time Group, you can compare the effects of market volatilities on Modine Manufacturing and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Life Time.
Diversification Opportunities for Modine Manufacturing and Life Time
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Modine and Life is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Life Time go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Life Time
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 1.52 times more return on investment than Life Time. However, Modine Manufacturing is 1.52 times more volatile than Life Time Group. It trades about 0.21 of its potential returns per unit of risk. Life Time Group is currently generating about -0.03 per unit of risk. If you would invest 8,879 in Modine Manufacturing on June 1, 2025 and sell it today you would earn a total of 4,734 from holding Modine Manufacturing or generate 53.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modine Manufacturing vs. Life Time Group
Performance |
| Timeline |
| Modine Manufacturing |
| Life Time Group |
Modine Manufacturing and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Life Time
The main advantage of trading using opposite Modine Manufacturing and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
| Life Time vs. Xponential Fitness | Life Time vs. Planet Fitness | Life Time vs. Lucky Strike Entertainment | Life Time vs. JAKKS Pacific |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance |