Correlation Between Mizuho Financial and Axos Financial
Can any of the company-specific risk be diversified away by investing in both Mizuho Financial and Axos 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 Mizuho Financial and Axos Financial 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 Axos Financial, you can compare the effects of market volatilities on Mizuho Financial and Axos 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 Mizuho Financial with a short position of Axos Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizuho Financial and Axos Financial.
Diversification Opportunities for Mizuho Financial and Axos Financial
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mizuho and Axos is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mizuho Financial Group and Axos Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axos Financial 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 Axos Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axos Financial has no effect on the direction of Mizuho Financial i.e., Mizuho Financial and Axos Financial go up and down completely randomly.
Pair Corralation between Mizuho Financial and Axos Financial
Considering the 90-day investment horizon Mizuho Financial Group is expected to generate 0.56 times more return on investment than Axos Financial. However, Mizuho Financial Group is 1.8 times less risky than Axos Financial. It trades about 0.06 of its potential returns per unit of risk. Axos Financial is currently generating about 0.02 per unit of risk. If you would invest 302.00 in Mizuho Financial Group on January 24, 2024 and sell it today you would earn a total of 93.00 from holding Mizuho Financial Group or generate 30.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mizuho Financial Group vs. Axos Financial
Performance |
| Timeline |
| Mizuho Financial |
| Axos Financial |
Mizuho Financial and Axos Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mizuho Financial and Axos Financial
The main advantage of trading using opposite Mizuho Financial and Axos Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizuho Financial position performs unexpectedly, Axos 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 Axos Financial will offset losses from the drop in Axos Financial's long position.| Mizuho Financial vs. KeyCorp | Mizuho Financial vs. First Mid Illinois | Mizuho Financial vs. Finwise Bancorp | Mizuho Financial vs. Home Bancorp |
| Axos Financial vs. Cullman Bancorp | Axos Financial vs. Home Federal Bancorp | Axos Financial vs. First Financial Northwest | Axos Financial vs. First Northwest Bancorp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |