Correlation Between Kura Sushi and HUMANA

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

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

Diversification Opportunities for Kura Sushi and HUMANA

-0.37

Correlation Coefficient

Kura Sushi  HUMANA

Very good diversification

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

Pair Corralation between Kura Sushi and HUMANA

Given the investment horizon of 90 days Kura Sushi is expected to generate 29.21 times less return on investment than HUMANA. But when comparing it to its historical volatility, Kura Sushi USA is 19.61 times less risky than HUMANA. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  8,010  in HUMANA INC on October 1, 2024 and sell it today you would lose (315.00) from holding HUMANA INC or give up 3.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.37%
Values	Daily Returns

Kura Sushi USA  vs.  HUMANA INC

Kura Sushi USA

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Kura Sushi unveiled solid returns over the last few months and may actually be approaching a breakup point.

HUMANA INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUMANA INC investors.

Pair Trading with Kura Sushi and HUMANA

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

The idea behind Kura Sushi USA and HUMANA INC 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .