Correlation Between TOPMATERIAL and UJU Electronics
Can any of the company-specific risk be diversified away by investing in both TOPMATERIAL 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 TOPMATERIAL and UJU Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOPMATERIAL LTD and UJU Electronics Co, you can compare the effects of market volatilities on TOPMATERIAL 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 TOPMATERIAL with a short position of UJU Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOPMATERIAL and UJU Electronics.
Diversification Opportunities for TOPMATERIAL and UJU Electronics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between TOPMATERIAL and UJU is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding TOPMATERIAL LTD and UJU Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UJU Electronics and TOPMATERIAL 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 TOPMATERIAL LTD 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 TOPMATERIAL i.e., TOPMATERIAL and UJU Electronics go up and down completely randomly.
Pair Corralation between TOPMATERIAL and UJU Electronics
Assuming the 90 days trading horizon TOPMATERIAL is expected to generate 2.19 times less return on investment than UJU Electronics. In addition to that, TOPMATERIAL is 1.59 times more volatile than UJU Electronics Co. It trades about 0.01 of its total potential returns per unit of risk. UJU Electronics Co is currently generating about 0.04 per unit of volatility. If you would invest 1,519,917 in UJU Electronics Co on October 30, 2024 and sell it today you would earn a total of 640,083 from holding UJU Electronics Co or generate 42.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOPMATERIAL LTD vs. UJU Electronics Co
Performance |
| Timeline |
| TOPMATERIAL LTD |
| UJU Electronics |
TOPMATERIAL and UJU Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOPMATERIAL and UJU Electronics
The main advantage of trading using opposite TOPMATERIAL and UJU Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOPMATERIAL 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.| TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. LG Energy Solution | TOPMATERIAL vs. SK Hynix |
| UJU Electronics vs. ChipsMedia | UJU Electronics vs. Pyung Hwa Industrial | UJU Electronics vs. Namhwa Industrial Co | UJU Electronics vs. Tamul Multimedia 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |