Correlation Between Techwing and UJU Electronics
Can any of the company-specific risk be diversified away by investing in both Techwing 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 Techwing and UJU Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techwing and UJU Electronics Co, you can compare the effects of market volatilities on Techwing 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 Techwing with a short position of UJU Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techwing and UJU Electronics.
Diversification Opportunities for Techwing and UJU Electronics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Techwing and UJU is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Techwing and UJU Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UJU Electronics and Techwing 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 Techwing 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 Techwing i.e., Techwing and UJU Electronics go up and down completely randomly.
Pair Corralation between Techwing and UJU Electronics
Assuming the 90 days trading horizon Techwing is expected to generate 1.4 times more return on investment than UJU Electronics. However, Techwing is 1.4 times more volatile than UJU Electronics Co. It trades about 0.29 of its potential returns per unit of risk. UJU Electronics Co is currently generating about 0.01 per unit of risk. If you would invest 2,825,000 in Techwing on August 15, 2025 and sell it today you would earn a total of 2,965,000 from holding Techwing or generate 104.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techwing vs. UJU Electronics Co
Performance |
| Timeline |
| Techwing |
| UJU Electronics |
Techwing and UJU Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techwing and UJU Electronics
The main advantage of trading using opposite Techwing and UJU Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techwing 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.| Techwing vs. Atinum Investment Co | Techwing vs. UJU Electronics Co | Techwing vs. EBEST Investment Securities | Techwing vs. Jeju Beer Co |
| UJU Electronics vs. Dongwon Metal Co | UJU Electronics vs. Duksan Hi Metal | UJU Electronics vs. Samhyun Steel Co | UJU Electronics vs. PJ Metal 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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