Correlation Between Mizuho Financial and Apple

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

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

Diversification Opportunities for Mizuho Financial and Apple

-0.74

Correlation Coefficient

Mizuho Financial  Apple

Pay attention - limited upside

The 3 months correlation between Mizuho and Apple is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mizuho Financial Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Mizuho 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 Mizuho Financial Group are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Mizuho Financial i.e., Mizuho Financial and Apple go up and down completely randomly.

Pair Corralation between Mizuho Financial and Apple

Considering the 90-day investment horizon Mizuho Financial Group is expected to generate 0.92 times more return on investment than Apple. However, Mizuho Financial Group is 1.08 times less risky than Apple. It trades about 0.02 of its potential returns per unit of risk. Apple Inc is currently generating about 0.01 per unit of risk. If you would invest  386.00  in Mizuho Financial Group on February 1, 2024 and sell it today you would earn a total of  1.00  from holding Mizuho Financial Group or generate 0.26% return on investment over 90 days.

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

Mizuho Financial Group  vs.  Apple Inc

Mizuho Financial

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mizuho Financial Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Mizuho Financial may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Apple Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Mizuho Financial and Apple

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

The idea behind Mizuho Financial Group and Apple Inc 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.