Correlation Between DAX Index and Mitsubishi UFJ
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By analyzing existing cross correlation between DAX Index and Mitsubishi UFJ Financial, you can compare the effects of market volatilities on DAX Index and Mitsubishi UFJ 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 DAX Index with a short position of Mitsubishi UFJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Mitsubishi UFJ.
Diversification Opportunities for DAX Index and Mitsubishi UFJ
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and Mitsubishi is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Mitsubishi UFJ Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi UFJ Financial and DAX Index 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 DAX Index are associated (or correlated) with Mitsubishi UFJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi UFJ Financial has no effect on the direction of DAX Index i.e., DAX Index and Mitsubishi UFJ go up and down completely randomly.
Pair Corralation between DAX Index and Mitsubishi UFJ
Assuming the 90 days trading horizon DAX Index is expected to generate 1.56 times less return on investment than Mitsubishi UFJ. But when comparing it to its historical volatility, DAX Index is 2.8 times less risky than Mitsubishi UFJ. It trades about 0.14 of its potential returns per unit of risk. Mitsubishi UFJ Financial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 755.00 in Mitsubishi UFJ Financial on August 25, 2024 and sell it today you would earn a total of 345.00 from holding Mitsubishi UFJ Financial or generate 45.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
DAX Index vs. Mitsubishi UFJ Financial
Performance |
| Timeline |
DAX Index and Mitsubishi UFJ Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Mitsubishi UFJ Financial
Pair trading matchups for Mitsubishi UFJ
Pair Trading with DAX Index and Mitsubishi UFJ
The main advantage of trading using opposite DAX Index and Mitsubishi UFJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Mitsubishi UFJ 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 UFJ will offset losses from the drop in Mitsubishi UFJ's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| Mitsubishi UFJ vs. PT Global Mediacom | Mitsubishi UFJ vs. CNVISION MEDIA | Mitsubishi UFJ vs. Hollywood Bowl Group | Mitsubishi UFJ vs. Tencent Music Entertainment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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