Correlation Between Utron and PCB Tec

Can any of the company-specific risk be diversified away by investing in both Utron and PCB Tec 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 Utron and PCB Tec into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Utron and PCB Tec, you can compare the effects of market volatilities on Utron and PCB Tec 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 Utron with a short position of PCB Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utron and PCB Tec.

Diversification Opportunities for Utron and PCB Tec

-0.37

Correlation Coefficient

Utron  PCB Tec

Very good diversification

The 3 months correlation between Utron and PCB is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Utron and PCB Tec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCB Tec and Utron 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 Utron are associated (or correlated) with PCB Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCB Tec has no effect on the direction of Utron i.e., Utron and PCB Tec go up and down completely randomly.

Pair Corralation between Utron and PCB Tec

Assuming the 90 days trading horizon Utron is expected to generate 0.69 times more return on investment than PCB Tec. However, Utron is 1.46 times less risky than PCB Tec. It trades about 0.34 of its potential returns per unit of risk. PCB Tec is currently generating about -0.08 per unit of risk. If you would invest  37,930  in Utron on July 30, 2025 and sell it today you would earn a total of  13,180  from holding Utron or generate 34.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Utron  vs.  PCB Tec

Utron

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Utron are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Utron sustained solid returns over the last few months and may actually be approaching a breakup point.

PCB Tec

Risk-Adjusted Performance

Weakest

Over the last 90 days PCB Tec has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Utron and PCB Tec

The main advantage of trading using opposite Utron and PCB Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utron position performs unexpectedly, PCB Tec 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 PCB Tec will offset losses from the drop in PCB Tec's long position.

The idea behind Utron and PCB Tec pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.