Correlation Between UJU Electronics and NewFlex Technology
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and NewFlex Technology 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 NewFlex Technology 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 NewFlex Technology Co, you can compare the effects of market volatilities on UJU Electronics and NewFlex Technology 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 NewFlex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and NewFlex Technology.
Diversification Opportunities for UJU Electronics and NewFlex Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UJU and NewFlex is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and NewFlex Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFlex Technology 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 NewFlex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFlex Technology has no effect on the direction of UJU Electronics i.e., UJU Electronics and NewFlex Technology go up and down completely randomly.
Pair Corralation between UJU Electronics and NewFlex Technology
Assuming the 90 days trading horizon UJU Electronics Co is expected to under-perform the NewFlex Technology. But the stock apears to be less risky and, when comparing its historical volatility, UJU Electronics Co is 1.62 times less risky than NewFlex Technology. The stock trades about -0.01 of its potential returns per unit of risk. The NewFlex Technology Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 660,000 in NewFlex Technology Co on September 4, 2024 and sell it today you would lose (211,000) from holding NewFlex Technology Co or give up 31.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UJU Electronics Co vs. NewFlex Technology Co
Performance |
| Timeline |
| UJU Electronics |
| NewFlex Technology |
UJU Electronics and NewFlex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and NewFlex Technology
The main advantage of trading using opposite UJU Electronics and NewFlex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, NewFlex Technology 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 NewFlex Technology will offset losses from the drop in NewFlex Technology'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 |
| NewFlex Technology vs. PJ Metal Co | NewFlex Technology vs. MetaLabs Co | NewFlex Technology vs. ECSTELECOM Co | NewFlex Technology vs. SK Telecom 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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