Correlation Between Mitsubishi UFJ and Credit Acceptance
Can any of the company-specific risk be diversified away by investing in both Mitsubishi UFJ and Credit Acceptance 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 Mitsubishi UFJ and Credit Acceptance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsubishi UFJ Financial and Credit Acceptance, you can compare the effects of market volatilities on Mitsubishi UFJ and Credit Acceptance 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 Mitsubishi UFJ with a short position of Credit Acceptance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and Credit Acceptance.
Diversification Opportunities for Mitsubishi UFJ and Credit Acceptance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitsubishi and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and Credit Acceptance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Acceptance and Mitsubishi UFJ 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 Mitsubishi UFJ Financial are associated (or correlated) with Credit Acceptance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Acceptance has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Credit Acceptance go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and Credit Acceptance
If you would invest 5,820 in Mitsubishi UFJ Financial on August 24, 2024 and sell it today you would earn a total of 984.00 from holding Mitsubishi UFJ Financial or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsubishi UFJ Financial vs. Credit Acceptance
Performance |
| Timeline |
| Mitsubishi UFJ Financial |
| Credit Acceptance |
Mitsubishi UFJ and Credit Acceptance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi UFJ and Credit Acceptance
The main advantage of trading using opposite Mitsubishi UFJ and Credit Acceptance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, Credit Acceptance 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 Credit Acceptance will offset losses from the drop in Credit Acceptance's long position.| Mitsubishi UFJ vs. Sumitomo Mitsui Financial | Mitsubishi UFJ vs. BTG Pactual Logstica | Mitsubishi UFJ vs. Plano Plano Desenvolvimento | Mitsubishi UFJ vs. Companhia Habitasul de |
| Credit Acceptance vs. Marvell Technology | Credit Acceptance vs. Take Two Interactive Software | Credit Acceptance vs. Uber Technologies | Credit Acceptance vs. Paycom Software |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |