Correlation Between ING Groep and Mitsubishi UFJ
Can any of the company-specific risk be diversified away by investing in both ING Groep and Mitsubishi UFJ 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 ING Groep and Mitsubishi UFJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Groep NV and Mitsubishi UFJ Financial, you can compare the effects of market volatilities on ING Groep 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 ING Groep with a short position of Mitsubishi UFJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Groep and Mitsubishi UFJ.
Diversification Opportunities for ING Groep and Mitsubishi UFJ
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ING and Mitsubishi is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ING Groep NV 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 ING Groep 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 ING Groep NV 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 ING Groep i.e., ING Groep and Mitsubishi UFJ go up and down completely randomly.
Pair Corralation between ING Groep and Mitsubishi UFJ
Assuming the 90 days trading horizon ING Groep NV is expected to under-perform the Mitsubishi UFJ. But the stock apears to be less risky and, when comparing its historical volatility, ING Groep NV is 1.53 times less risky than Mitsubishi UFJ. The stock trades about -0.12 of its potential returns per unit of risk. The Mitsubishi UFJ Financial is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 940.00 in Mitsubishi UFJ Financial on August 25, 2024 and sell it today you would earn a total of 160.00 from holding Mitsubishi UFJ Financial or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Groep NV vs. Mitsubishi UFJ Financial
Performance |
| Timeline |
| ING Groep NV |
| Mitsubishi UFJ Financial |
ING Groep and Mitsubishi UFJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Groep and Mitsubishi UFJ
The main advantage of trading using opposite ING Groep and Mitsubishi UFJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Groep 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.| ING Groep vs. Office Properties Income | ING Groep vs. THORNEY TECHS LTD | ING Groep vs. Playtech plc | ING Groep vs. GLG LIFE TECH |
| Mitsubishi UFJ vs. JPMorgan Chase Co | Mitsubishi UFJ vs. Bank of America | Mitsubishi UFJ vs. Citigroup | Mitsubishi UFJ vs. Banco Bilbao Vizcaya |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |