Correlation Between NewFlex Technology and UJU Electronics
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology and UJU 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 NewFlex Technology and UJU Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and UJU Electronics Co, you can compare the effects of market volatilities on NewFlex Technology and UJU 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 NewFlex Technology with a short position of UJU Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and UJU Electronics.
Diversification Opportunities for NewFlex Technology and UJU Electronics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NewFlex and UJU is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co and UJU Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UJU Electronics and NewFlex Technology 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 NewFlex Technology Co are associated (or correlated) with UJU Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UJU Electronics has no effect on the direction of NewFlex Technology i.e., NewFlex Technology and UJU Electronics go up and down completely randomly.
Pair Corralation between NewFlex Technology and UJU Electronics
Assuming the 90 days trading horizon NewFlex Technology Co is expected to under-perform the UJU Electronics. But the stock apears to be less risky and, when comparing its historical volatility, NewFlex Technology Co is 1.24 times less risky than UJU Electronics. The stock trades about -0.26 of its potential returns per unit of risk. The UJU Electronics Co is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 1,438,000 in UJU Electronics Co on September 4, 2024 and sell it today you would lose (182,000) from holding UJU Electronics Co or give up 12.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. UJU Electronics Co
Performance |
| Timeline |
| NewFlex Technology |
| UJU Electronics |
NewFlex Technology and UJU Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and UJU Electronics
The main advantage of trading using opposite NewFlex Technology and UJU Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology position performs unexpectedly, UJU 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 UJU Electronics will offset losses from the drop in UJU Electronics' long position.| NewFlex Technology vs. PJ Metal Co | NewFlex Technology vs. MetaLabs Co | NewFlex Technology vs. ECSTELECOM Co | NewFlex Technology vs. SK Telecom Co |
| UJU Electronics vs. Dongsin Engineering Construction | UJU Electronics vs. Doosan Fuel Cell | UJU Electronics vs. Daishin Balance 1 | UJU Electronics vs. Total Soft Bank |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |