Correlation Between STAG Industrial, and Mitsubishi UFJ
Can any of the company-specific risk be diversified away by investing in both STAG Industrial, and Mitsubishi UFJ 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 STAG Industrial, and Mitsubishi UFJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial, and Mitsubishi UFJ Financial, you can compare the effects of market volatilities on STAG Industrial, and Mitsubishi UFJ 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 STAG Industrial, with a short position of Mitsubishi UFJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial, and Mitsubishi UFJ.
Diversification Opportunities for STAG Industrial, and Mitsubishi UFJ
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STAG and Mitsubishi is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial, and Mitsubishi UFJ Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi UFJ Financial and STAG Industrial, 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 STAG Industrial, are associated (or correlated) with Mitsubishi UFJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi UFJ Financial has no effect on the direction of STAG Industrial, i.e., STAG Industrial, and Mitsubishi UFJ go up and down completely randomly.
Pair Corralation between STAG Industrial, and Mitsubishi UFJ
Assuming the 90 days trading horizon STAG Industrial, is expected to generate 4.32 times less return on investment than Mitsubishi UFJ. But when comparing it to its historical volatility, STAG Industrial, is 1.3 times less risky than Mitsubishi UFJ. It trades about 0.02 of its potential returns per unit of risk. Mitsubishi UFJ Financial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,434 in Mitsubishi UFJ Financial on October 27, 2024 and sell it today you would earn a total of 3,755 from holding Mitsubishi UFJ Financial or generate 109.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.41% |
| Values | Daily Returns |
STAG Industrial, vs. Mitsubishi UFJ Financial
Performance |
| Timeline |
| STAG Industrial, |
| Mitsubishi UFJ Financial |
STAG Industrial, and Mitsubishi UFJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAG Industrial, and Mitsubishi UFJ
The main advantage of trading using opposite STAG Industrial, and Mitsubishi UFJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial, position performs unexpectedly, Mitsubishi UFJ 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 Mitsubishi UFJ will offset losses from the drop in Mitsubishi UFJ's long position.| STAG Industrial, vs. Fidelity National Information | STAG Industrial, vs. Public Storage | STAG Industrial, vs. Brpr Corporate Offices | STAG Industrial, vs. ON Semiconductor |
| Mitsubishi UFJ vs. New Oriental Education | Mitsubishi UFJ vs. Molson Coors Beverage | Mitsubishi UFJ vs. Mangels Industrial SA | Mitsubishi UFJ vs. Applied Materials, |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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