Correlation Between UJU Electronics and Doosan Fuel
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and Doosan Fuel 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 Doosan Fuel 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 Doosan Fuel Cell, you can compare the effects of market volatilities on UJU Electronics and Doosan Fuel 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 Doosan Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and Doosan Fuel.
Diversification Opportunities for UJU Electronics and Doosan Fuel
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UJU and Doosan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and Doosan Fuel Cell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doosan Fuel Cell 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 Doosan Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doosan Fuel Cell has no effect on the direction of UJU Electronics i.e., UJU Electronics and Doosan Fuel go up and down completely randomly.
Pair Corralation between UJU Electronics and Doosan Fuel
Assuming the 90 days trading horizon UJU Electronics Co is expected to generate 0.9 times more return on investment than Doosan Fuel. However, UJU Electronics Co is 1.11 times less risky than Doosan Fuel. It trades about -0.01 of its potential returns per unit of risk. Doosan Fuel Cell is currently generating about -0.02 per unit of risk. If you would invest 1,536,011 in UJU Electronics Co on September 14, 2024 and sell it today you would lose (191,011) from holding UJU Electronics Co or give up 12.44% 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. Doosan Fuel Cell
Performance |
| Timeline |
| UJU Electronics |
| Doosan Fuel Cell |
UJU Electronics and Doosan Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and Doosan Fuel
The main advantage of trading using opposite UJU Electronics and Doosan Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, Doosan Fuel 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 Doosan Fuel will offset losses from the drop in Doosan Fuel's long position.| UJU Electronics vs. Cube Entertainment | UJU Electronics vs. Dreamus Company | UJU Electronics vs. LG Energy Solution | UJU Electronics vs. Dongwon System |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |