Correlation Between UJU Electronics and Neungyule Education
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and Neungyule Education 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 Neungyule Education 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 Neungyule Education, you can compare the effects of market volatilities on UJU Electronics and Neungyule Education 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 Neungyule Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and Neungyule Education.
Diversification Opportunities for UJU Electronics and Neungyule Education
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UJU and Neungyule is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and Neungyule Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neungyule Education 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 Neungyule Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neungyule Education has no effect on the direction of UJU Electronics i.e., UJU Electronics and Neungyule Education go up and down completely randomly.
Pair Corralation between UJU Electronics and Neungyule Education
Assuming the 90 days trading horizon UJU Electronics Co is expected to generate 0.72 times more return on investment than Neungyule Education. However, UJU Electronics Co is 1.38 times less risky than Neungyule Education. It trades about 0.04 of its potential returns per unit of risk. Neungyule Education is currently generating about 0.01 per unit of risk. If you would invest 1,384,596 in UJU Electronics Co on October 16, 2024 and sell it today you would earn a total of 410,404 from holding UJU Electronics Co or generate 29.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UJU Electronics Co vs. Neungyule Education
Performance |
| Timeline |
| UJU Electronics |
| Neungyule Education |
UJU Electronics and Neungyule Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and Neungyule Education
The main advantage of trading using opposite UJU Electronics and Neungyule Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, Neungyule Education 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 Neungyule Education will offset losses from the drop in Neungyule Education's long position.| UJU Electronics vs. Hyundai Engineering Plastics | UJU Electronics vs. WONIK Materials CoLtd | UJU Electronics vs. Lotte Data Communication | UJU Electronics vs. TOPMATERIAL LTD |
| Neungyule Education vs. Songwon Industrial Co | Neungyule Education vs. Namhwa Industrial Co | Neungyule Education vs. Samyoung Electronics Co | Neungyule Education 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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