Correlation Between MITSUBISHI and Aterian
Specify exactly 2 symbols:
By analyzing existing cross correlation between MITSUBISHI UFJ FINL and Aterian, you can compare the effects of market volatilities on MITSUBISHI and Aterian 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 with a short position of Aterian. Check out your portfolio center. Please also check ongoing floating volatility patterns of MITSUBISHI and Aterian.
Diversification Opportunities for MITSUBISHI and Aterian
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MITSUBISHI and Aterian is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MITSUBISHI UFJ FINL and Aterian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aterian and MITSUBISHI 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 FINL are associated (or correlated) with Aterian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aterian has no effect on the direction of MITSUBISHI i.e., MITSUBISHI and Aterian go up and down completely randomly.
Pair Corralation between MITSUBISHI and Aterian
Assuming the 90 days trading horizon MITSUBISHI UFJ FINL is expected to generate 0.1 times more return on investment than Aterian. However, MITSUBISHI UFJ FINL is 10.12 times less risky than Aterian. It trades about -0.18 of its potential returns per unit of risk. Aterian is currently generating about -0.04 per unit of risk. If you would invest 9,963 in MITSUBISHI UFJ FINL on September 2, 2024 and sell it today you would lose (116.00) from holding MITSUBISHI UFJ FINL or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
MITSUBISHI UFJ FINL vs. Aterian
Performance |
| Timeline |
| MITSUBISHI UFJ FINL |
| Aterian |
MITSUBISHI and Aterian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MITSUBISHI and Aterian
The main advantage of trading using opposite MITSUBISHI and Aterian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MITSUBISHI position performs unexpectedly, Aterian 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 Aterian will offset losses from the drop in Aterian's long position.The idea behind MITSUBISHI UFJ FINL and Aterian pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aterian vs. Energy Focu | Aterian vs. Flexsteel Industries | Aterian vs. Ethan Allen Interiors | Aterian vs. FGI Industries |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |