Correlation Between Modine Manufacturing and Kuke Music

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

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

Diversification Opportunities for Modine Manufacturing and Kuke Music

-0.73

Correlation Coefficient

Modine Manufacturing  Kuke Music

Pay attention - limited upside

The 3 months correlation between Modine and Kuke is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Kuke Music Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuke Music Holding 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 Kuke Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuke Music Holding has no effect on the direction of Modine Manufacturing i.e., Modine Manufacturing and Kuke Music go up and down completely randomly.

Pair Corralation between Modine Manufacturing and Kuke Music

Considering the 90-day investment horizon Modine Manufacturing is expected to generate 1.11 times more return on investment than Kuke Music. However, Modine Manufacturing is 1.11 times more volatile than Kuke Music Holding. It trades about 0.2 of its potential returns per unit of risk. Kuke Music Holding is currently generating about -0.32 per unit of risk. If you would invest  9,326  in Modine Manufacturing on May 21, 2025 and sell it today you would earn a total of  4,621  from holding Modine Manufacturing or generate 49.55% return on investment over 90 days.

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

Modine Manufacturing  vs.  Kuke Music Holding

Modine Manufacturing

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Modine Manufacturing are ranked lower than 15 (%) 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.

Kuke Music Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Kuke Music Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Modine Manufacturing and Kuke Music

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

The idea behind Modine Manufacturing and Kuke Music Holding 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.