Correlation Between MEBUKI FINANCIAL and Danaher

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

By analyzing existing cross correlation between MEBUKI FINANCIAL GROUP and Danaher, you can compare the effects of market volatilities on MEBUKI FINANCIAL and Danaher 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 MEBUKI FINANCIAL with a short position of Danaher. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEBUKI FINANCIAL and Danaher.

Diversification Opportunities for MEBUKI FINANCIAL and Danaher

-0.66

Correlation Coefficient

MEBUKI FINANCIAL  Danaher

Excellent diversification

The 3 months correlation between MEBUKI and Danaher is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding MEBUKI FINANCIAL GROUP and Danaher in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danaher and MEBUKI FINANCIAL 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 MEBUKI FINANCIAL GROUP are associated (or correlated) with Danaher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danaher has no effect on the direction of MEBUKI FINANCIAL i.e., MEBUKI FINANCIAL and Danaher go up and down completely randomly.

Pair Corralation between MEBUKI FINANCIAL and Danaher

Assuming the 90 days horizon MEBUKI FINANCIAL GROUP is expected to generate 0.49 times more return on investment than Danaher. However, MEBUKI FINANCIAL GROUP is 2.05 times less risky than Danaher. It trades about 0.18 of its potential returns per unit of risk. Danaher is currently generating about -0.04 per unit of risk. If you would invest  334.00  in MEBUKI FINANCIAL GROUP on October 24, 2024 and sell it today you would earn a total of  64.00  from holding MEBUKI FINANCIAL GROUP or generate 19.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

MEBUKI FINANCIAL GROUP  vs.  Danaher

MEBUKI FINANCIAL

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MEBUKI FINANCIAL GROUP are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, MEBUKI FINANCIAL reported solid returns over the last few months and may actually be approaching a breakup point.

Danaher

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Danaher has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with MEBUKI FINANCIAL and Danaher

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

The idea behind MEBUKI FINANCIAL GROUP and Danaher 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 Commodity Directory module to find actively traded commodities issued by global exchanges.