Correlation Between Kura Sushi and Hi Lai
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Hi Lai 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 Hi Lai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kura Sushi Asia and Hi Lai Foods Co, you can compare the effects of market volatilities on Kura Sushi and Hi Lai 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 Hi Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Hi Lai.
Diversification Opportunities for Kura Sushi and Hi Lai
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kura and 1268 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi Asia and Hi Lai Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Lai Foods 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 Asia are associated (or correlated) with Hi Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Lai Foods has no effect on the direction of Kura Sushi i.e., Kura Sushi and Hi Lai go up and down completely randomly.
Pair Corralation between Kura Sushi and Hi Lai
Assuming the 90 days trading horizon Kura Sushi Asia is expected to under-perform the Hi Lai. In addition to that, Kura Sushi is 1.39 times more volatile than Hi Lai Foods Co. It trades about -0.03 of its total potential returns per unit of risk. Hi Lai Foods Co is currently generating about 0.03 per unit of volatility. If you would invest 12,878 in Hi Lai Foods Co on September 2, 2024 and sell it today you would earn a total of 2,022 from holding Hi Lai Foods Co or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kura Sushi Asia vs. Hi Lai Foods Co
Performance |
| Timeline |
| Kura Sushi Asia |
| Hi Lai Foods |
Kura Sushi and Hi Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Hi Lai
The main advantage of trading using opposite Kura Sushi and Hi Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Hi Lai 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 Hi Lai will offset losses from the drop in Hi Lai's long position.| Kura Sushi vs. Gourmet Master Co | Kura Sushi vs. Wowprime Corp | Kura Sushi vs. Louisa Professional Coffee | Kura Sushi vs. An Shin Food Services |
| Hi Lai vs. Gourmet Master Co | Hi Lai vs. Wowprime Corp | Hi Lai vs. Louisa Professional Coffee | Hi Lai vs. An Shin Food Services |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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