Correlation Between AGRICUL BK and Mitsubishi
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Mitsubishi 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 AGRICUL BK and Mitsubishi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICUL BK CHINA H and Mitsubishi, you can compare the effects of market volatilities on AGRICUL BK and Mitsubishi 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 AGRICUL BK with a short position of Mitsubishi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Mitsubishi.
Diversification Opportunities for AGRICUL BK and Mitsubishi
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGRICUL and Mitsubishi is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Mitsubishi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi and AGRICUL BK 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 AGRICUL BK CHINA H are associated (or correlated) with Mitsubishi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Mitsubishi go up and down completely randomly.
Pair Corralation between AGRICUL BK and Mitsubishi
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 2.74 times more return on investment than Mitsubishi. However, AGRICUL BK is 2.74 times more volatile than Mitsubishi. It trades about 0.07 of its potential returns per unit of risk. Mitsubishi is currently generating about 0.02 per unit of risk. If you would invest 14.00 in AGRICUL BK CHINA H on September 1, 2024 and sell it today you would earn a total of 32.00 from holding AGRICUL BK CHINA H or generate 228.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Mitsubishi
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Mitsubishi |
AGRICUL BK and Mitsubishi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Mitsubishi
The main advantage of trading using opposite AGRICUL BK and Mitsubishi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Mitsubishi 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 Mitsubishi will offset losses from the drop in Mitsubishi's long position.| AGRICUL BK vs. BE Semiconductor Industries | AGRICUL BK vs. NXP Semiconductors NV | AGRICUL BK vs. Luckin Coffee | AGRICUL BK vs. ELMOS SEMICONDUCTOR |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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