Correlation Between Fluent and Mitsubishi UFJ

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

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

Diversification Opportunities for Fluent and Mitsubishi UFJ

-0.61

Correlation Coefficient

Fluent  Mitsubishi UFJ

Excellent diversification

The 3 months correlation between Fluent and Mitsubishi is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc 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 Fluent 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 Fluent Inc 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 Fluent i.e., Fluent and Mitsubishi UFJ go up and down completely randomly.

Pair Corralation between Fluent and Mitsubishi UFJ

Given the investment horizon of 90 days Fluent Inc is expected to under-perform the Mitsubishi UFJ. In addition to that, Fluent is 1.13 times more volatile than Mitsubishi UFJ Lease. It trades about -0.05 of its total potential returns per unit of risk. Mitsubishi UFJ Lease is currently generating about 0.06 per unit of volatility. If you would invest  1,283  in Mitsubishi UFJ Lease on December 30, 2024 and sell it today you would earn a total of  112.00  from holding Mitsubishi UFJ Lease or generate 8.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	88.71%
Values	Daily Returns

Fluent Inc  vs.  Mitsubishi UFJ Lease

Fluent Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Mitsubishi UFJ Lease

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mitsubishi UFJ Lease are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Mitsubishi UFJ showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fluent and Mitsubishi UFJ

The main advantage of trading using opposite Fluent and Mitsubishi UFJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent 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.

The idea behind Fluent Inc and Mitsubishi UFJ Lease 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.