Correlation Between Mitsubishi UFJ and Genesis Growth

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

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

Diversification Opportunities for Mitsubishi UFJ and Genesis Growth

0.0

Correlation Coefficient

Mitsubishi UFJ  Genesis Growth

Pay attention - limited upside

The 3 months correlation between Mitsubishi and Genesis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and Genesis Growth Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Growth Tech 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 Genesis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Growth Tech has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Genesis Growth go up and down completely randomly.

Pair Corralation between Mitsubishi UFJ and Genesis Growth

If you would invest  1,065  in Mitsubishi UFJ Financial on December 30, 2024 and sell it today you would earn a total of  346.00  from holding Mitsubishi UFJ Financial or generate 32.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mitsubishi UFJ Financial  vs.  Genesis Growth Tech

Mitsubishi UFJ Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mitsubishi UFJ Financial are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking indicators, Mitsubishi UFJ reported solid returns over the last few months and may actually be approaching a breakup point.

Genesis Growth Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genesis Growth Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Genesis Growth is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mitsubishi UFJ and Genesis Growth

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

The idea behind Mitsubishi UFJ Financial and Genesis Growth Tech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.