Correlation Between Mitsui Fudosan and Square Enix

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

By analyzing existing cross correlation between Mitsui Fudosan Co and Square Enix Holdings, you can compare the effects of market volatilities on Mitsui Fudosan and Square Enix 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 Mitsui Fudosan with a short position of Square Enix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui Fudosan and Square Enix.

Diversification Opportunities for Mitsui Fudosan and Square Enix

-0.06

Correlation Coefficient

Mitsui Fudosan  Square Enix

Good diversification

The 3 months correlation between Mitsui and Square is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui Fudosan Co and Square Enix Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Square Enix Holdings and Mitsui Fudosan 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 Mitsui Fudosan Co are associated (or correlated) with Square Enix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Square Enix Holdings has no effect on the direction of Mitsui Fudosan i.e., Mitsui Fudosan and Square Enix go up and down completely randomly.

Pair Corralation between Mitsui Fudosan and Square Enix

Assuming the 90 days horizon Mitsui Fudosan Co is expected to generate 0.25 times more return on investment than Square Enix. However, Mitsui Fudosan Co is 3.95 times less risky than Square Enix. It trades about 0.01 of its potential returns per unit of risk. Square Enix Holdings is currently generating about -0.23 per unit of risk. If you would invest  1,080  in Mitsui Fudosan Co on July 18, 2025 and sell it today you would lose (6.00) from holding Mitsui Fudosan Co or give up 0.56% of portfolio value over 90 days.

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

Mitsui Fudosan Co  vs.  Square Enix Holdings

Mitsui Fudosan

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mitsui Fudosan Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Mitsui Fudosan reported solid returns over the last few months and may actually be approaching a breakup point.

Square Enix Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Square Enix Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Square Enix reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mitsui Fudosan and Square Enix

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

The idea behind Mitsui Fudosan Co and Square Enix Holdings 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.