Correlation Between Mizuho Financial and Spectrum Brands

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

Diversification Opportunities for Mizuho Financial and Spectrum Brands

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between Mizuho and Spectrum is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mizuho Financial Group and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings 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 Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Mizuho Financial i.e., Mizuho Financial and Spectrum Brands go up and down completely randomly.

Pair Corralation between Mizuho Financial and Spectrum Brands

Assuming the 90 days horizon Mizuho Financial Group is expected to generate 1.54 times more return on investment than Spectrum Brands. However, Mizuho Financial is 1.54 times more volatile than Spectrum Brands Holdings. It trades about 0.03 of its potential returns per unit of risk. Spectrum Brands Holdings is currently generating about 0.03 per unit of risk. If you would invest  3,348  in Mizuho Financial Group on August 27, 2025 and sell it today you would earn a total of  115.00  from holding Mizuho Financial Group or generate 3.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mizuho Financial Group  vs.  Spectrum Brands Holdings

 Performance 
       Timeline  
Mizuho Financial 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mizuho Financial Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Mizuho Financial may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Spectrum Brands Holdings 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Spectrum Brands Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Spectrum Brands is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Mizuho Financial and Spectrum Brands Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mizuho Financial and Spectrum Brands

The main advantage of trading using opposite Mizuho Financial and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizuho Financial position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.
The idea behind Mizuho Financial Group and Spectrum Brands 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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