Correlation Between Mitsubishi UFJ and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both Mitsubishi UFJ and Hugo Boss 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 Hugo Boss 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 Hugo Boss AG, you can compare the effects of market volatilities on Mitsubishi UFJ and Hugo Boss 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 Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and Hugo Boss.
Diversification Opportunities for Mitsubishi UFJ and Hugo Boss
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitsubishi and Hugo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG 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 Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Hugo Boss go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and Hugo Boss
Given the investment horizon of 90 days Mitsubishi UFJ Financial is expected to generate 0.92 times more return on investment than Hugo Boss. However, Mitsubishi UFJ Financial is 1.09 times less risky than Hugo Boss. It trades about 0.19 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.21 per unit of risk. If you would invest 1,150 in Mitsubishi UFJ Financial on October 20, 2024 and sell it today you would earn a total of 55.00 from holding Mitsubishi UFJ Financial or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsubishi UFJ Financial vs. Hugo Boss AG
Performance |
| Timeline |
| Mitsubishi UFJ Financial |
| Hugo Boss AG |
Mitsubishi UFJ and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi UFJ and Hugo Boss
The main advantage of trading using opposite Mitsubishi UFJ and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Mitsubishi UFJ vs. Sumitomo Mitsui Financial | Mitsubishi UFJ vs. Mizuho Financial Group | Mitsubishi UFJ vs. Nomura Holdings ADR | Mitsubishi UFJ vs. Natwest Group PLC |
| Hugo Boss vs. Superior Uniform Group | Hugo Boss vs. Lakeland Industries | Hugo Boss vs. Jerash Holdings | Hugo Boss vs. G III Apparel Group |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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