Correlation Between Mizuno and Plug Power
Can any of the company-specific risk be diversified away by investing in both Mizuno and Plug Power 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 Mizuno and Plug Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mizuno and Plug Power, you can compare the effects of market volatilities on Mizuno and Plug Power 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 Mizuno with a short position of Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizuno and Plug Power.
Diversification Opportunities for Mizuno and Plug Power
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mizuno and Plug is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mizuno and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power and Mizuno 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 Mizuno are associated (or correlated) with Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Mizuno i.e., Mizuno and Plug Power go up and down completely randomly.
Pair Corralation between Mizuno and Plug Power
Assuming the 90 days horizon Mizuno is expected to generate 2.14 times less return on investment than Plug Power. But when comparing it to its historical volatility, Mizuno is 2.25 times less risky than Plug Power. It trades about 0.13 of its potential returns per unit of risk. Plug Power is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 180.00 in Plug Power on September 1, 2024 and sell it today you would earn a total of 29.00 from holding Plug Power or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mizuno vs. Plug Power
Performance |
| Timeline |
| Mizuno |
| Plug Power |
Mizuno and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mizuno and Plug Power
The main advantage of trading using opposite Mizuno and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizuno position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Mizuno vs. Canon Marketing Japan | Mizuno vs. SIDETRADE EO 1 | Mizuno vs. Salesforce | Mizuno vs. Vastned Retail NV |
| Plug Power vs. Murata Manufacturing Co | Plug Power vs. Corning Incorporated | Plug Power vs. TDK Corporation |
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 Stocks Directory module to find actively traded stocks across global markets.
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