Correlation Between DAEDUCK ELECTRONICS and UJU Electronics
Can any of the company-specific risk be diversified away by investing in both DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS and UJU Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAEDUCK ELECTRONICS CoLtd and UJU Electronics Co, you can compare the effects of market volatilities on DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS with a short position of UJU Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEDUCK ELECTRONICS and UJU Electronics.
Diversification Opportunities for DAEDUCK ELECTRONICS and UJU Electronics
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAEDUCK and UJU is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding DAEDUCK ELECTRONICS CoLtd and UJU Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UJU Electronics and DAEDUCK 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 DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK ELECTRONICS i.e., DAEDUCK ELECTRONICS and UJU Electronics go up and down completely randomly.
Pair Corralation between DAEDUCK ELECTRONICS and UJU Electronics
Assuming the 90 days trading horizon DAEDUCK ELECTRONICS CoLtd is expected to under-perform the UJU Electronics. But the stock apears to be less risky and, when comparing its historical volatility, DAEDUCK ELECTRONICS CoLtd is 1.94 times less risky than UJU Electronics. The stock trades about -0.02 of its potential returns per unit of risk. The UJU Electronics Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,196,322 in UJU Electronics Co on January 21, 2025 and sell it today you would earn a total of 1,843,678 from holding UJU Electronics Co or generate 154.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
DAEDUCK ELECTRONICS CoLtd vs. UJU Electronics Co
Performance |
| Timeline |
| DAEDUCK ELECTRONICS CoLtd |
| UJU Electronics |
DAEDUCK ELECTRONICS and UJU Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAEDUCK ELECTRONICS and UJU Electronics
The main advantage of trading using opposite DAEDUCK ELECTRONICS and UJU Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEDUCK ELECTRONICS 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.| DAEDUCK ELECTRONICS vs. SK IE Technology | DAEDUCK ELECTRONICS vs. Solus Advanced Materials | DAEDUCK ELECTRONICS vs. Iljin Display | DAEDUCK ELECTRONICS vs. Sungmoon Electronics Co |
| UJU Electronics vs. Anam Electronics Co | UJU Electronics vs. Samji Electronics Co | UJU Electronics vs. PJ Metal Co | UJU Electronics vs. Samyoung 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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