Correlation Between UJU Electronics and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and Pureun Mutual 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 UJU Electronics and Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UJU Electronics Co and Pureun Mutual Savings, you can compare the effects of market volatilities on UJU Electronics and Pureun Mutual 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 UJU Electronics with a short position of Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and Pureun Mutual.
Diversification Opportunities for UJU Electronics and Pureun Mutual
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UJU and Pureun is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings and UJU Electronics 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 UJU Electronics Co are associated (or correlated) with Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of UJU Electronics i.e., UJU Electronics and Pureun Mutual go up and down completely randomly.
Pair Corralation between UJU Electronics and Pureun Mutual
Assuming the 90 days trading horizon UJU Electronics Co is expected to generate 1.02 times more return on investment than Pureun Mutual. However, UJU Electronics is 1.02 times more volatile than Pureun Mutual Savings. It trades about 0.57 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about 0.1 per unit of risk. If you would invest 1,244,913 in UJU Electronics Co on October 11, 2024 and sell it today you would earn a total of 652,087 from holding UJU Electronics Co or generate 52.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UJU Electronics Co vs. Pureun Mutual Savings
Performance |
| Timeline |
| UJU Electronics |
| Pureun Mutual Savings |
UJU Electronics and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and Pureun Mutual
The main advantage of trading using opposite UJU Electronics and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| UJU Electronics vs. Kbi Metal Co | UJU Electronics vs. JYP Entertainment Corp | UJU Electronics vs. Daejung Chemicals Metals | UJU Electronics vs. SKONEC Entertainment Co |
| Pureun Mutual vs. Daewoo Electronic Components | Pureun Mutual vs. Samsung Life Insurance | Pureun Mutual vs. Sungmoon Electronics Co | Pureun Mutual vs. UJU Electronics Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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