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

0.16

Correlation Coefficient

Modine Manufacturing  Getty Images

Average diversification

The 3 months correlation between Modine and Getty is 0.16. 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 0.84 times more return on investment than Getty Images. However, Modine Manufacturing is 1.19 times less risky than Getty Images. It trades about 0.22 of its potential returns per unit of risk. Getty Images Holdings is currently generating about 0.06 per unit of risk. If you would invest  9,081  in Modine Manufacturing on May 28, 2025 and sell it today you would earn a total of  5,287  from holding Modine Manufacturing or generate 58.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Modine Manufacturing  vs.  Getty Images Holdings

Modine Manufacturing

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Modine Manufacturing are ranked lower than 17 (%) 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.

Getty Images Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Getty Images Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Getty Images showed solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind Modine Manufacturing and Getty Images Holdings 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.