Correlation Between Mitsubishi UFJ and Kambi Group
Can any of the company-specific risk be diversified away by investing in both Mitsubishi UFJ and Kambi Group 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 Kambi Group 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 Kambi Group plc, you can compare the effects of market volatilities on Mitsubishi UFJ and Kambi Group 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 Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and Kambi Group.
Diversification Opportunities for Mitsubishi UFJ and Kambi Group
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitsubishi and Kambi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and Kambi Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kambi Group plc 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 Kambi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kambi Group plc has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Kambi Group go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and Kambi Group
Assuming the 90 days horizon Mitsubishi UFJ Financial is expected to generate 1.12 times more return on investment than Kambi Group. However, Mitsubishi UFJ is 1.12 times more volatile than Kambi Group plc. It trades about 0.06 of its potential returns per unit of risk. Kambi Group plc is currently generating about -0.03 per unit of risk. If you would invest 660.00 in Mitsubishi UFJ Financial on November 2, 2024 and sell it today you would earn a total of 700.00 from holding Mitsubishi UFJ Financial or generate 106.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.13% |
| Values | Daily Returns |
Mitsubishi UFJ Financial vs. Kambi Group plc
Performance |
| Timeline |
| Mitsubishi UFJ Financial |
| Kambi Group plc |
Mitsubishi UFJ and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi UFJ and Kambi Group
The main advantage of trading using opposite Mitsubishi UFJ and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, Kambi Group 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 Kambi Group will offset losses from the drop in Kambi Group'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 |
| Kambi Group vs. Light Wonder | Kambi Group vs. Everi Holdings | Kambi Group vs. PlayAGS | Kambi Group vs. Accel 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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