Correlation Between Modine Manufacturing and Wallbox NV
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing and Wallbox NV 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 Wallbox NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and Wallbox NV, you can compare the effects of market volatilities on Modine Manufacturing and Wallbox NV 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 Wallbox NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Wallbox NV.
Diversification Opportunities for Modine Manufacturing and Wallbox NV
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Modine and Wallbox is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Wallbox NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallbox NV 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 Wallbox NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallbox NV has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Wallbox NV go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Wallbox NV
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 0.94 times more return on investment than Wallbox NV. However, Modine Manufacturing is 1.06 times less risky than Wallbox NV. It trades about 0.21 of its potential returns per unit of risk. Wallbox NV is currently generating about -0.14 per unit of risk. If you would invest 9,245 in Modine Manufacturing on May 27, 2025 and sell it today you would earn a total of 4,792 from holding Modine Manufacturing or generate 51.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modine Manufacturing vs. Wallbox NV
Performance |
| Timeline |
| Modine Manufacturing |
| Wallbox NV |
Modine Manufacturing and Wallbox NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Wallbox NV
The main advantage of trading using opposite Modine Manufacturing and Wallbox NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing position performs unexpectedly, Wallbox NV 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 Wallbox NV will offset losses from the drop in Wallbox NV's long position.| Modine Manufacturing vs. Adient PLC | Modine Manufacturing vs. Autoliv | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. BorgWarner |
| Wallbox NV vs. Fabrinet | Wallbox NV vs. Kopin | Wallbox NV vs. Neonode | Wallbox NV vs. Ouster, Common Stock |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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