Correlation Between Userjoy Technology and Fun Yours
Can any of the company-specific risk be diversified away by investing in both Userjoy Technology and Fun Yours 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 Userjoy Technology and Fun Yours into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Userjoy Technology Co and Fun Yours Technology, you can compare the effects of market volatilities on Userjoy Technology and Fun Yours 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 Userjoy Technology with a short position of Fun Yours. Check out your portfolio center. Please also check ongoing floating volatility patterns of Userjoy Technology and Fun Yours.
Diversification Opportunities for Userjoy Technology and Fun Yours
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Userjoy and Fun is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Userjoy Technology Co and Fun Yours Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fun Yours Technology and Userjoy 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 Userjoy Technology Co are associated (or correlated) with Fun Yours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fun Yours Technology has no effect on the direction of Userjoy Technology i.e., Userjoy Technology and Fun Yours go up and down completely randomly.
Pair Corralation between Userjoy Technology and Fun Yours
Assuming the 90 days trading horizon Userjoy Technology Co is expected to under-perform the Fun Yours. But the stock apears to be less risky and, when comparing its historical volatility, Userjoy Technology Co is 2.47 times less risky than Fun Yours. The stock trades about -0.29 of its potential returns per unit of risk. The Fun Yours Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,920 in Fun Yours Technology on September 1, 2024 and sell it today you would earn a total of 90.00 from holding Fun Yours Technology or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Userjoy Technology Co vs. Fun Yours Technology
Performance |
| Timeline |
| Userjoy Technology |
| Fun Yours Technology |
Userjoy Technology and Fun Yours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Userjoy Technology and Fun Yours
The main advantage of trading using opposite Userjoy Technology and Fun Yours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Userjoy Technology position performs unexpectedly, Fun Yours 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 Fun Yours will offset losses from the drop in Fun Yours' long position.| Userjoy Technology vs. Gamania Digital Entertainment | Userjoy Technology vs. Soft World International | Userjoy Technology vs. Chinese Gamer International | Userjoy Technology vs. International Games System |
| Fun Yours vs. Chunghwa Telecom Co | Fun Yours vs. President Chain Store | Fun Yours vs. Formosa Petrochemical Corp | Fun Yours vs. Formosa Chemicals Fibre |
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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