Correlation Between U Haul and Mitsubishi UFJ
Can any of the company-specific risk be diversified away by investing in both U Haul 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 U Haul and Mitsubishi UFJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and Mitsubishi UFJ Lease, you can compare the effects of market volatilities on U Haul 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 U Haul with a short position of Mitsubishi UFJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Mitsubishi UFJ.
Diversification Opportunities for U Haul and Mitsubishi UFJ
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between UHAL and Mitsubishi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Mitsubishi UFJ Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi UFJ Lease and U Haul 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 U Haul Holding 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 Lease has no effect on the direction of U Haul i.e., U Haul and Mitsubishi UFJ go up and down completely randomly.
Pair Corralation between U Haul and Mitsubishi UFJ
Given the investment horizon of 90 days U Haul Holding is expected to generate 0.46 times more return on investment than Mitsubishi UFJ. However, U Haul Holding is 2.18 times less risky than Mitsubishi UFJ. It trades about 0.03 of its potential returns per unit of risk. Mitsubishi UFJ Lease is currently generating about -0.06 per unit of risk. If you would invest 7,047 in U Haul Holding on August 28, 2024 and sell it today you would earn a total of 172.00 from holding U Haul Holding or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
U Haul Holding vs. Mitsubishi UFJ Lease
Performance |
| Timeline |
| U Haul Holding |
| Mitsubishi UFJ Lease |
U Haul and Mitsubishi UFJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Mitsubishi UFJ
The main advantage of trading using opposite U Haul and Mitsubishi UFJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul 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.| U Haul vs. AerCap Holdings NV | U Haul vs. Alta Equipment Group | U Haul vs. PROG Holdings | U Haul vs. GATX Corporation |
| Mitsubishi UFJ vs. Summit Hotel Properties | Mitsubishi UFJ vs. Mills Music Trust | Mitsubishi UFJ vs. Getty Realty | Mitsubishi UFJ vs. Cardinal Health |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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