Correlation Between Flanigans Enterprises and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises 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 Flanigans Enterprises and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and Kura Sushi USA, you can compare the effects of market volatilities on Flanigans Enterprises 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 Flanigans Enterprises with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and Kura Sushi.
Diversification Opportunities for Flanigans Enterprises and Kura Sushi
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flanigans and Kura is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises 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 Flanigans Enterprises 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 Flanigans Enterprises 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 Flanigans Enterprises i.e., Flanigans Enterprises and Kura Sushi go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and Kura Sushi
Considering the 90-day investment horizon Flanigans Enterprises is expected to under-perform the Kura Sushi. But the stock apears to be less risky and, when comparing its historical volatility, Flanigans Enterprises is 5.46 times less risky than Kura Sushi. The stock trades about -0.05 of its potential returns per unit of risk. The Kura Sushi USA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,981 in Kura Sushi USA on September 2, 2024 and sell it today you would earn a total of 711.00 from holding Kura Sushi USA or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Flanigans Enterprises vs. Kura Sushi USA
Performance |
| Timeline |
| Flanigans Enterprises |
| Kura Sushi USA |
Flanigans Enterprises and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flanigans Enterprises and Kura Sushi
The main advantage of trading using opposite Flanigans Enterprises and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises 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.| Flanigans Enterprises vs. FAT Brands | Flanigans Enterprises vs. Potbelly Co | Flanigans Enterprises vs. BJs Restaurants | Flanigans Enterprises vs. One Group Hospitality |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |