Correlation Between Kura Sushi and RETAIL

Can any of the company-specific risk be diversified away by investing in both Kura Sushi and RETAIL 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 RETAIL 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 RETAIL OPPORTUNITY INVTS, you can compare the effects of market volatilities on Kura Sushi and RETAIL 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 RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and RETAIL.

Diversification Opportunities for Kura Sushi and RETAIL

0.36

Correlation Coefficient

Kura Sushi  RETAIL

Weak diversification

The 3 months correlation between Kura and RETAIL is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and RETAIL OPPORTUNITY INVTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL OPPORTUNITY INVTS 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 RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL OPPORTUNITY INVTS has no effect on the direction of Kura Sushi i.e., Kura Sushi and RETAIL go up and down completely randomly.

Pair Corralation between Kura Sushi and RETAIL

Given the investment horizon of 90 days Kura Sushi USA is expected to generate 16.44 times more return on investment than RETAIL. However, Kura Sushi is 16.44 times more volatile than RETAIL OPPORTUNITY INVTS. It trades about 0.12 of its potential returns per unit of risk. RETAIL OPPORTUNITY INVTS is currently generating about -0.05 per unit of risk. If you would invest  7,733  in Kura Sushi USA on September 16, 2024 and sell it today you would earn a total of  1,960  from holding Kura Sushi USA or generate 25.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	38.46%
Values	Daily Returns

Kura Sushi USA  vs.  RETAIL OPPORTUNITY INVTS

Kura Sushi USA

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 9 (%) 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.

RETAIL OPPORTUNITY INVTS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RETAIL OPPORTUNITY INVTS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, RETAIL is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kura Sushi and RETAIL

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

The idea behind Kura Sushi USA and RETAIL OPPORTUNITY INVTS 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..