Correlation Between Dongwon Metal and UJU Electronics
Can any of the company-specific risk be diversified away by investing in both Dongwon Metal 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 Dongwon Metal and UJU Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwon Metal Co and UJU Electronics Co, you can compare the effects of market volatilities on Dongwon Metal 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 Dongwon Metal with a short position of UJU Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwon Metal and UJU Electronics.
Diversification Opportunities for Dongwon Metal and UJU Electronics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongwon and UJU is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dongwon Metal 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 Dongwon Metal 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 Dongwon Metal 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 Dongwon Metal i.e., Dongwon Metal and UJU Electronics go up and down completely randomly.
Pair Corralation between Dongwon Metal and UJU Electronics
Assuming the 90 days trading horizon Dongwon Metal Co is expected to under-perform the UJU Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Dongwon Metal Co is 1.83 times less risky than UJU Electronics. The stock trades about -0.04 of its potential returns per unit of risk. The UJU Electronics Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,050,000 in UJU Electronics Co on August 20, 2025 and sell it today you would earn a total of 25,000 from holding UJU Electronics Co or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwon Metal Co vs. UJU Electronics Co
Performance |
| Timeline |
| Dongwon Metal |
| UJU Electronics |
Dongwon Metal and UJU Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwon Metal and UJU Electronics
The main advantage of trading using opposite Dongwon Metal and UJU Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwon Metal 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.| Dongwon Metal vs. AptaBio Therapeutics | Dongwon Metal vs. Daewoo SBI SPAC | Dongwon Metal vs. Dream Security co | Dongwon Metal vs. Microfriend |
| UJU Electronics vs. Woori Technology | UJU Electronics vs. Orbitech Co | UJU Electronics vs. Eugene Technology CoLtd | UJU Electronics vs. Vitzro Tech 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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