Correlation Between ASE Industrial and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both ASE Industrial 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 ASE Industrial and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASE Industrial Holding and Kura Sushi USA, you can compare the effects of market volatilities on ASE Industrial 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 ASE Industrial with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Kura Sushi.
Diversification Opportunities for ASE Industrial and Kura Sushi
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASE and Kura is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding 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 ASE Industrial 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 ASE Industrial Holding 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 ASE Industrial i.e., ASE Industrial and Kura Sushi go up and down completely randomly.
Pair Corralation between ASE Industrial and Kura Sushi
Considering the 90-day investment horizon ASE Industrial is expected to generate 3.73 times less return on investment than Kura Sushi. But when comparing it to its historical volatility, ASE Industrial Holding is 2.26 times less risky than Kura Sushi. It trades about 0.08 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9,291 in Kura Sushi USA on September 5, 2024 and sell it today you would earn a total of 1,077 from holding Kura Sushi USA or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASE Industrial Holding vs. Kura Sushi USA
Performance |
| Timeline |
| ASE Industrial Holding |
| Kura Sushi USA |
ASE Industrial and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Kura Sushi
The main advantage of trading using opposite ASE Industrial and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial 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.| ASE Industrial vs. NXP Semiconductors NV | ASE Industrial vs. Monolithic Power Systems | ASE Industrial vs. ON Semiconductor | ASE Industrial vs. GSI Technology |
| Kura Sushi vs. Hyatt Hotels | Kura Sushi vs. Smart Share Global | Kura Sushi vs. Wyndham Hotels Resorts | Kura Sushi vs. WW International |
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 CEOs Directory module to screen CEOs from public companies around the world.
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