Correlation Between Bagger Daves and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Bagger Daves 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 Bagger Daves and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bagger Daves Burger and Kura Sushi USA, you can compare the effects of market volatilities on Bagger Daves 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 Bagger Daves with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bagger Daves and Kura Sushi.
Diversification Opportunities for Bagger Daves and Kura Sushi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bagger and Kura is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bagger Daves Burger 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 Bagger Daves 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 Bagger Daves Burger 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 Bagger Daves i.e., Bagger Daves and Kura Sushi go up and down completely randomly.
Pair Corralation between Bagger Daves and Kura Sushi
Given the investment horizon of 90 days Bagger Daves is expected to generate 1.13 times less return on investment than Kura Sushi. In addition to that, Bagger Daves is 1.67 times more volatile than Kura Sushi USA. It trades about 0.03 of its total potential returns per unit of risk. Kura Sushi USA is currently generating about 0.05 per unit of volatility. If you would invest 5,433 in Kura Sushi USA on September 3, 2024 and sell it today you would earn a total of 5,259 from holding Kura Sushi USA or generate 96.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bagger Daves Burger vs. Kura Sushi USA
Performance |
| Timeline |
| Bagger Daves Burger |
| Kura Sushi USA |
Bagger Daves and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bagger Daves and Kura Sushi
The main advantage of trading using opposite Bagger Daves and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bagger Daves 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.| Bagger Daves vs. Marstons PLC | Bagger Daves vs. Flanigans Enterprises | Bagger Daves vs. Ark Restaurants Corp | Bagger Daves vs. Spot Coffee |
| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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