Correlation Between Mitsubishi UFJ and PT Bank
Can any of the company-specific risk be diversified away by investing in both Mitsubishi UFJ and PT Bank 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 PT Bank 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 PT Bank Mandiri, you can compare the effects of market volatilities on Mitsubishi UFJ and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and PT Bank.
Diversification Opportunities for Mitsubishi UFJ and PT Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitsubishi and PQ9 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and PT Bank Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Mandiri 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Mandiri has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and PT Bank go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and PT Bank
If you would invest 41.00 in PT Bank Mandiri on August 31, 2024 and sell it today you would lose (1.00) from holding PT Bank Mandiri or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Mitsubishi UFJ Financial vs. PT Bank Mandiri
Performance |
| Timeline |
| Mitsubishi UFJ Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| PT Bank Mandiri |
Mitsubishi UFJ and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi UFJ and PT Bank
The main advantage of trading using opposite Mitsubishi UFJ and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Mitsubishi UFJ vs. Harmony Gold Mining | Mitsubishi UFJ vs. Zijin Mining Group | Mitsubishi UFJ vs. Lion One Metals | Mitsubishi UFJ vs. ADRIATIC METALS LS 013355 |
| PT Bank vs. Citic Telecom International | PT Bank vs. CHINA EDUCATION GROUP | PT Bank vs. Strategic Education | PT Bank vs. Chunghwa Telecom Co |
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.
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