Correlation Between Saia and Mitsubishi UFJ

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

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

Diversification Opportunities for Saia and Mitsubishi UFJ

-0.36

Correlation Coefficient

Saia  Mitsubishi UFJ

Very good diversification

The 3 months correlation between Saia and Mitsubishi is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Saia 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 Saia 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 Saia 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 Saia i.e., Saia and Mitsubishi UFJ go up and down completely randomly.

Pair Corralation between Saia and Mitsubishi UFJ

Given the investment horizon of 90 days Saia Inc is expected to generate 0.73 times more return on investment than Mitsubishi UFJ. However, Saia Inc is 1.38 times less risky than Mitsubishi UFJ. It trades about 0.0 of its potential returns per unit of risk. Mitsubishi UFJ Lease is currently generating about -0.04 per unit of risk. If you would invest  46,197  in Saia Inc on October 12, 2024 and sell it today you would lose (1,375) from holding Saia Inc or give up 2.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Saia Inc  vs.  Mitsubishi UFJ Lease

Saia Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Saia is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Mitsubishi UFJ Lease

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mitsubishi UFJ Lease has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Saia and Mitsubishi UFJ

The main advantage of trading using opposite Saia and Mitsubishi UFJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia 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 Saia 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 Stocks Directory module to find actively traded stocks across global markets.