Correlation Between UJU Electronics and Clean Science
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and Clean Science 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 Clean Science 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 Clean Science co, you can compare the effects of market volatilities on UJU Electronics and Clean Science 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 Clean Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and Clean Science.
Diversification Opportunities for UJU Electronics and Clean Science
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between UJU and Clean is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and Clean Science co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Science co 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 Clean Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Science co has no effect on the direction of UJU Electronics i.e., UJU Electronics and Clean Science go up and down completely randomly.
Pair Corralation between UJU Electronics and Clean Science
Assuming the 90 days trading horizon UJU Electronics Co is expected to generate 1.14 times more return on investment than Clean Science. However, UJU Electronics is 1.14 times more volatile than Clean Science co. It trades about 0.0 of its potential returns per unit of risk. Clean Science co is currently generating about -0.05 per unit of risk. If you would invest 1,469,136 in UJU Electronics Co on September 3, 2024 and sell it today you would lose (176,136) from holding UJU Electronics Co or give up 11.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UJU Electronics Co vs. Clean Science co
Performance |
| Timeline |
| UJU Electronics |
| Clean Science co |
UJU Electronics and Clean Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and Clean Science
The main advantage of trading using opposite UJU Electronics and Clean Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, Clean Science 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 Clean Science will offset losses from the drop in Clean Science'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 |
| Clean Science vs. Daol Investment Securities | Clean Science vs. SEOJEON ELECTRIC MACHINERY | Clean Science vs. Hanwha InvestmentSecurities Co | Clean Science vs. SV Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
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