Correlation Between Mitsubishi UFJ and Citigroup
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By analyzing existing cross correlation between Mitsubishi UFJ Financial and Citigroup, you can compare the effects of market volatilities on Mitsubishi UFJ and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and Citigroup.
Diversification Opportunities for Mitsubishi UFJ and Citigroup
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mitsubishi and Citigroup is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Citigroup go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and Citigroup
Assuming the 90 days trading horizon Mitsubishi UFJ Financial is expected to generate 0.74 times more return on investment than Citigroup. However, Mitsubishi UFJ Financial is 1.36 times less risky than Citigroup. It trades about 0.35 of its potential returns per unit of risk. Citigroup is currently generating about 0.24 per unit of risk. If you would invest 960.00 in Mitsubishi UFJ Financial on September 1, 2024 and sell it today you would earn a total of 150.00 from holding Mitsubishi UFJ Financial or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsubishi UFJ Financial vs. Citigroup
Performance |
| Timeline |
| Mitsubishi UFJ Financial |
| Citigroup |
Mitsubishi UFJ and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi UFJ and Citigroup
The main advantage of trading using opposite Mitsubishi UFJ and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| Mitsubishi UFJ vs. Q2M Managementberatung AG | Mitsubishi UFJ vs. Ares Management Corp | Mitsubishi UFJ vs. Coor Service Management | Mitsubishi UFJ vs. CITY OFFICE REIT |
| Citigroup vs. The Hanover Insurance | Citigroup vs. Safety Insurance Group | Citigroup vs. Uber Technologies | Citigroup vs. NetSol Technologies |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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