Correlation Between VBI Vaccines and Kura Sushi

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

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

Diversification Opportunities for VBI Vaccines and Kura Sushi

-0.75

Correlation Coefficient

VBI Vaccines  Kura Sushi

Pay attention - limited upside

The 3 months correlation between VBI and Kura is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding VBI Vaccines and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA and VBI Vaccines 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 VBI Vaccines are associated (or correlated) with Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of VBI Vaccines i.e., VBI Vaccines and Kura Sushi go up and down completely randomly.

Pair Corralation between VBI Vaccines and Kura Sushi

Assuming the 90 days horizon VBI Vaccines is expected to under-perform the Kura Sushi. In addition to that, VBI Vaccines is 3.6 times more volatile than Kura Sushi USA. It trades about -0.05 of its total potential returns per unit of risk. Kura Sushi USA is currently generating about 0.06 per unit of volatility. If you would invest  3,988  in Kura Sushi USA on September 27, 2024 and sell it today you would earn a total of  5,076  from holding Kura Sushi USA or generate 127.28% return on investment over 90 days.

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

VBI Vaccines  vs.  Kura Sushi USA

VBI Vaccines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VBI Vaccines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Kura Sushi USA

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 4 (%) 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.

Pair Trading with VBI Vaccines and Kura Sushi

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

The idea behind VBI Vaccines and Kura Sushi USA 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.