Correlation Between Gourmet Master and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Gourmet Master 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 Gourmet Master and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gourmet Master Co and Kura Sushi Asia, you can compare the effects of market volatilities on Gourmet Master 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 Gourmet Master with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gourmet Master and Kura Sushi.
Diversification Opportunities for Gourmet Master and Kura Sushi
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gourmet and Kura is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gourmet Master Co and Kura Sushi Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi Asia and Gourmet Master 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 Gourmet Master Co 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 Asia has no effect on the direction of Gourmet Master i.e., Gourmet Master and Kura Sushi go up and down completely randomly.
Pair Corralation between Gourmet Master and Kura Sushi
Assuming the 90 days trading horizon Gourmet Master Co is expected to generate 0.77 times more return on investment than Kura Sushi. However, Gourmet Master Co is 1.3 times less risky than Kura Sushi. It trades about 0.16 of its potential returns per unit of risk. Kura Sushi Asia is currently generating about -0.19 per unit of risk. If you would invest 9,120 in Gourmet Master Co on August 27, 2024 and sell it today you would earn a total of 460.00 from holding Gourmet Master Co or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gourmet Master Co vs. Kura Sushi Asia
Performance |
| Timeline |
| Gourmet Master |
| Kura Sushi Asia |
Gourmet Master and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gourmet Master and Kura Sushi
The main advantage of trading using opposite Gourmet Master and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gourmet Master 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.| Gourmet Master vs. Taiwan Semiconductor Manufacturing | Gourmet Master vs. Hon Hai Precision | Gourmet Master vs. MediaTek | Gourmet Master vs. Chunghwa Telecom 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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