Correlation Between UJU Electronics and Okins Electronics
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and Okins Electronics 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 Okins Electronics 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 Okins Electronics Co, you can compare the effects of market volatilities on UJU Electronics and Okins Electronics 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 Okins Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and Okins Electronics.
Diversification Opportunities for UJU Electronics and Okins Electronics
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UJU and Okins is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and Okins Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okins Electronics 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 Okins Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okins Electronics has no effect on the direction of UJU Electronics i.e., UJU Electronics and Okins Electronics go up and down completely randomly.
Pair Corralation between UJU Electronics and Okins Electronics
Assuming the 90 days trading horizon UJU Electronics Co is expected to generate 1.45 times more return on investment than Okins Electronics. However, UJU Electronics is 1.45 times more volatile than Okins Electronics Co. It trades about -0.12 of its potential returns per unit of risk. Okins Electronics Co is currently generating about -0.58 per unit of risk. If you would invest 1,480,000 in UJU Electronics Co on August 30, 2024 and sell it today you would lose (120,000) from holding UJU Electronics Co or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UJU Electronics Co vs. Okins Electronics Co
Performance |
| Timeline |
| UJU Electronics |
| Okins Electronics |
UJU Electronics and Okins Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and Okins Electronics
The main advantage of trading using opposite UJU Electronics and Okins Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, Okins Electronics 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 Okins Electronics will offset losses from the drop in Okins Electronics' long position.| UJU Electronics vs. Daou Data Corp | UJU Electronics vs. Busan Industrial Co | UJU Electronics vs. Busan Ind | UJU Electronics vs. Shinhan WTI Futures |
| Okins Electronics vs. Daou Data Corp | Okins Electronics vs. Busan Industrial Co | Okins Electronics vs. Busan Ind | Okins Electronics vs. Shinhan WTI Futures |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |