Correlation Between Mitsubishi UFJ and HUMANA
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By analyzing existing cross correlation between Mitsubishi UFJ Financial and HUMANA INC, you can compare the effects of market volatilities on Mitsubishi UFJ and HUMANA 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 HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and HUMANA.
Diversification Opportunities for Mitsubishi UFJ and HUMANA
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitsubishi and HUMANA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and HUMANA go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and HUMANA
Assuming the 90 days horizon Mitsubishi UFJ Financial is expected to generate 4.07 times more return on investment than HUMANA. However, Mitsubishi UFJ is 4.07 times more volatile than HUMANA INC. It trades about 0.11 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.09 per unit of risk. If you would invest 936.00 in Mitsubishi UFJ Financial on December 29, 2023 and sell it today you would earn a total of 95.00 from holding Mitsubishi UFJ Financial or generate 10.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mitsubishi UFJ Financial vs. HUMANA INC
Performance |
Timeline |
Mitsubishi UFJ Financial |
HUMANA INC |
Mitsubishi UFJ and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mitsubishi UFJ and HUMANA
The main advantage of trading using opposite Mitsubishi UFJ and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.Mitsubishi UFJ vs. JPMorgan Chase Co | Mitsubishi UFJ vs. Bank Of America | Mitsubishi UFJ vs. Bank Of America | Mitsubishi UFJ vs. Bank Of America |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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