Correlation Between Mizuho Financial and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Mizuho Financial and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical SE, you can compare the effects of market volatilities on Mizuho Financial and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizuho Financial and CompuGroup Medical.
Diversification Opportunities for Mizuho Financial and CompuGroup Medical
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mizuho and CompuGroup is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mizuho Financial Group and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Mizuho Financial i.e., Mizuho Financial and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Mizuho Financial and CompuGroup Medical
Assuming the 90 days trading horizon Mizuho Financial Group is expected to generate 0.81 times more return on investment than CompuGroup Medical. However, Mizuho Financial Group is 1.23 times less risky than CompuGroup Medical. It trades about 0.49 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.31 per unit of risk. If you would invest 378.00 in Mizuho Financial Group on September 3, 2024 and sell it today you would earn a total of 88.00 from holding Mizuho Financial Group or generate 23.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mizuho Financial Group vs. CompuGroup Medical SE
Performance |
| Timeline |
| Mizuho Financial |
| CompuGroup Medical |
Mizuho Financial and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mizuho Financial and CompuGroup Medical
The main advantage of trading using opposite Mizuho Financial and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizuho Financial position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| Mizuho Financial vs. MOLSON RS BEVERAGE | Mizuho Financial vs. Nomad Foods | Mizuho Financial vs. COFCO Joycome Foods | Mizuho Financial vs. National Beverage Corp |
| CompuGroup Medical vs. DOCDATA | CompuGroup Medical vs. DATAGROUP SE | CompuGroup Medical vs. AECOM TECHNOLOGY | CompuGroup Medical vs. Hyrican Informationssysteme Aktiengesellschaft |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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