Correlation Between Banco Santander and Mizuho Financial
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Mizuho Financial 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 Banco Santander and Mizuho Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander Brasil and Mizuho Financial Group, you can compare the effects of market volatilities on Banco Santander and Mizuho Financial 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 Banco Santander with a short position of Mizuho Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Mizuho Financial.
Diversification Opportunities for Banco Santander and Mizuho Financial
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banco and Mizuho is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Brasil and Mizuho Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mizuho Financial and Banco Santander 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 Banco Santander Brasil are associated (or correlated) with Mizuho Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mizuho Financial has no effect on the direction of Banco Santander i.e., Banco Santander and Mizuho Financial go up and down completely randomly.
Pair Corralation between Banco Santander and Mizuho Financial
Given the investment horizon of 90 days Banco Santander is expected to generate 42.54 times less return on investment than Mizuho Financial. But when comparing it to its historical volatility, Banco Santander Brasil is 1.28 times less risky than Mizuho Financial. It trades about 0.0 of its potential returns per unit of risk. Mizuho Financial Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,417 in Mizuho Financial Group on November 27, 2024 and sell it today you would earn a total of 1,388 from holding Mizuho Financial Group or generate 97.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander Brasil vs. Mizuho Financial Group
Performance |
| Timeline |
| Banco Santander Brasil |
| Mizuho Financial |
Banco Santander and Mizuho Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Mizuho Financial
The main advantage of trading using opposite Banco Santander and Mizuho Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Mizuho Financial 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 Mizuho Financial will offset losses from the drop in Mizuho Financial's long position.| Banco Santander vs. Banco De Chile | Banco Santander vs. CrossFirst Bankshares | Banco Santander vs. Banco Bradesco SA | Banco Santander vs. CF Bankshares |
| Mizuho Financial vs. Banco De Chile | Mizuho Financial vs. Banco Santander Brasil | Mizuho Financial vs. CrossFirst Bankshares | Mizuho Financial vs. Banco Bradesco SA |
Check out your portfolio center.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |