Correlation Between UJU Electronics and Samsung Life
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and Samsung Life 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 Samsung Life 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 Samsung Life, you can compare the effects of market volatilities on UJU Electronics and Samsung Life 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 Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and Samsung Life.
Diversification Opportunities for UJU Electronics and Samsung Life
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UJU and Samsung is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and Samsung Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life 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 Samsung Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Life has no effect on the direction of UJU Electronics i.e., UJU Electronics and Samsung Life go up and down completely randomly.
Pair Corralation between UJU Electronics and Samsung Life
Assuming the 90 days trading horizon UJU Electronics is expected to generate 6.84 times less return on investment than Samsung Life. In addition to that, UJU Electronics is 1.05 times more volatile than Samsung Life. It trades about 0.01 of its total potential returns per unit of risk. Samsung Life is currently generating about 0.08 per unit of volatility. If you would invest 6,920,000 in Samsung Life on September 4, 2024 and sell it today you would earn a total of 3,980,000 from holding Samsung Life or generate 57.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UJU Electronics Co vs. Samsung Life
Performance |
| Timeline |
| UJU Electronics |
| Samsung Life |
UJU Electronics and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and Samsung Life
The main advantage of trading using opposite UJU Electronics and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, Samsung Life 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 Samsung Life will offset losses from the drop in Samsung Life's long position.| UJU Electronics vs. Dongsin Engineering Construction | UJU Electronics vs. Doosan Fuel Cell | UJU Electronics vs. Daishin Balance 1 | UJU Electronics vs. Total Soft Bank |
| Samsung Life vs. DAEDUCK ELECTRONICS CoLtd | Samsung Life vs. Automobile Pc | Samsung Life vs. Netmarble Games Corp | Samsung Life 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |