Correlation Between Mizuho Financial and Ault Disruptive

Can any of the company-specific risk be diversified away by investing in both Mizuho Financial and Ault Disruptive 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 Ault Disruptive 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 Ault Disruptive Technologies, you can compare the effects of market volatilities on Mizuho Financial and Ault Disruptive 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 Ault Disruptive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizuho Financial and Ault Disruptive.

Diversification Opportunities for Mizuho Financial and Ault Disruptive

-0.75

Correlation Coefficient

Mizuho Financial  Ault Disruptive

Pay attention - limited upside

The 3 months correlation between Mizuho and Ault is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mizuho Financial Group and Ault Disruptive Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ault Disruptive Tech 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 Ault Disruptive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ault Disruptive Tech has no effect on the direction of Mizuho Financial i.e., Mizuho Financial and Ault Disruptive go up and down completely randomly.

Pair Corralation between Mizuho Financial and Ault Disruptive

Assuming the 90 days horizon Mizuho Financial is expected to generate 4.55 times less return on investment than Ault Disruptive. But when comparing it to its historical volatility, Mizuho Financial Group is 7.01 times less risky than Ault Disruptive. It trades about 0.08 of its potential returns per unit of risk. Ault Disruptive Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,269  in Ault Disruptive Technologies on September 20, 2024 and sell it today you would lose (129.00) from holding Ault Disruptive Technologies or give up 10.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	71.86%
Values	Daily Returns

Mizuho Financial Group  vs.  Ault Disruptive Technologies

Mizuho Financial

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mizuho Financial Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Mizuho Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Ault Disruptive Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ault Disruptive Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mizuho Financial and Ault Disruptive

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

The idea behind Mizuho Financial Group and Ault Disruptive Technologies 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.