Correlation Between Mitsubishi UFJ and Activision Blizzard
Can any of the company-specific risk be diversified away by investing in both Mitsubishi UFJ and Activision Blizzard 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 Activision Blizzard 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 Activision Blizzard, you can compare the effects of market volatilities on Mitsubishi UFJ and Activision Blizzard 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 Activision Blizzard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and Activision Blizzard.
Diversification Opportunities for Mitsubishi UFJ and Activision Blizzard
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitsubishi and Activision is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and Activision Blizzard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Activision Blizzard 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 Activision Blizzard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Activision Blizzard has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Activision Blizzard go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and Activision Blizzard
If you would invest 1,026 in Mitsubishi UFJ Financial on August 30, 2024 and sell it today you would earn a total of 56.00 from holding Mitsubishi UFJ Financial or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Mitsubishi UFJ Financial vs. Activision Blizzard
Performance |
| Timeline |
| Mitsubishi UFJ Financial |
| Activision Blizzard |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mitsubishi UFJ and Activision Blizzard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi UFJ and Activision Blizzard
The main advantage of trading using opposite Mitsubishi UFJ and Activision Blizzard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, Activision Blizzard 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 Activision Blizzard will offset losses from the drop in Activision Blizzard's long position.| Mitsubishi UFJ vs. Banco Bilbao Vizcaya | Mitsubishi UFJ vs. ABN AMRO Bank | Mitsubishi UFJ vs. ING Groep NV | Mitsubishi UFJ vs. Banco de Sabadell |
| Activision Blizzard vs. Take Two Interactive Software | Activision Blizzard vs. Nintendo Co ADR | Activision Blizzard vs. NetEase | Activision Blizzard vs. Playtika Holding Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |