Correlation Between Modine Manufacturing and Corazon Mining

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

By analyzing existing cross correlation between Modine Manufacturing and Corazon Mining, you can compare the effects of market volatilities on Modine Manufacturing and Corazon Mining 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 Corazon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Corazon Mining.

Diversification Opportunities for Modine Manufacturing and Corazon Mining

0.0

Correlation Coefficient

Modine Manufacturing  Corazon Mining

Pay attention - limited upside

The 3 months correlation between Modine and Corazon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Corazon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corazon Mining 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 Corazon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corazon Mining has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Corazon Mining go up and down completely randomly.

Pair Corralation between Modine Manufacturing and Corazon Mining

If you would invest  9,245  in Modine Manufacturing on May 26, 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	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Modine Manufacturing  vs.  Corazon Mining

Modine Manufacturing

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Modine Manufacturing are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Modine Manufacturing exhibited solid returns over the last few months and may actually be approaching a breakup point.

Corazon Mining

Risk-Adjusted Performance

Weakest

Over the last 90 days Corazon Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Corazon Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Modine Manufacturing and Corazon Mining

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

The idea behind Modine Manufacturing and Corazon Mining 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.