Correlation Between Mixi and DeNA Co

Can any of the company-specific risk be diversified away by investing in both Mixi and DeNA Co 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 Mixi and DeNA Co into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between mixi Inc and DeNA Co, you can compare the effects of market volatilities on Mixi and DeNA Co 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 Mixi with a short position of DeNA Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mixi and DeNA Co.

Diversification Opportunities for Mixi and DeNA Co

-0.02

Correlation Coefficient

Mixi  DeNA Co

Good diversification

The 3 months correlation between Mixi and DeNA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding mixi Inc and DeNA Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DeNA Co and Mixi 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 mixi Inc are associated (or correlated) with DeNA Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DeNA Co has no effect on the direction of Mixi i.e., Mixi and DeNA Co go up and down completely randomly.

Pair Corralation between Mixi and DeNA Co

Assuming the 90 days horizon mixi Inc is expected to generate 0.86 times more return on investment than DeNA Co. However, mixi Inc is 1.17 times less risky than DeNA Co. It trades about -0.07 of its potential returns per unit of risk. DeNA Co is currently generating about -0.16 per unit of risk. If you would invest  2,420  in mixi Inc on May 6, 2025 and sell it today you would lose (292.00) from holding mixi Inc or give up 12.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

mixi Inc  vs.  DeNA Co

mixi Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days mixi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

DeNA Co

Risk-Adjusted Performance

Very Weak

Over the last 90 days DeNA Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Mixi and DeNA Co

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

The idea behind mixi Inc and DeNA Co 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.