Correlation Between Mitsubishi UFJ and Anterix

Can any of the company-specific risk be diversified away by investing in both Mitsubishi UFJ and Anterix 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 Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mitsubishi UFJ Lease and Anterix, you can compare the effects of market volatilities on Mitsubishi UFJ and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and Anterix.

Diversification Opportunities for Mitsubishi UFJ and Anterix

-0.14

Correlation Coefficient

Mitsubishi UFJ  Anterix

Good diversification

The 24 months correlation between Mitsubishi and Anterix is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Lease and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Lease are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Anterix go up and down completely randomly.

Pair Corralation between Mitsubishi UFJ and Anterix

If you would invest  3,179  in Anterix on February 22, 2024 and sell it today you would earn a total of  101.00  from holding Anterix or generate 3.18% return on investment over 90 days.

Time Period	24 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mitsubishi UFJ Lease  vs.  Anterix

Mitsubishi UFJ Lease

Risk-Adjusted Performance

2 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mitsubishi UFJ Lease are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Mitsubishi UFJ may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Anterix is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mitsubishi UFJ and Anterix

The main advantage of trading using opposite Mitsubishi UFJ and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.

The idea behind Mitsubishi UFJ Lease and Anterix 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.

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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.