Correlation Between Dalata Hotel and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Dalata Hotel 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 Dalata Hotel and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dalata Hotel Group and Kura Sushi USA, you can compare the effects of market volatilities on Dalata Hotel 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 Dalata Hotel with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalata Hotel and Kura Sushi.
Diversification Opportunities for Dalata Hotel and Kura Sushi
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalata and Kura is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dalata Hotel Group 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 Dalata Hotel 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 Dalata Hotel Group 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 Dalata Hotel i.e., Dalata Hotel and Kura Sushi go up and down completely randomly.
Pair Corralation between Dalata Hotel and Kura Sushi
Assuming the 90 days horizon Dalata Hotel Group is expected to under-perform the Kura Sushi. But the otc stock apears to be less risky and, when comparing its historical volatility, Dalata Hotel Group is 12.52 times less risky than Kura Sushi. The otc stock trades about -0.03 of its potential returns per unit of risk. The Kura Sushi USA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,174 in Kura Sushi USA on August 29, 2024 and sell it today you would earn a total of 350.50 from holding Kura Sushi USA or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Dalata Hotel Group vs. Kura Sushi USA
Performance |
| Timeline |
| Dalata Hotel Group |
| Kura Sushi USA |
Dalata Hotel and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalata Hotel and Kura Sushi
The main advantage of trading using opposite Dalata Hotel and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalata Hotel 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.| Dalata Hotel vs. Arrow Electronics | Dalata Hotel vs. Playstudios | Dalata Hotel vs. Doubledown Interactive Co | Dalata Hotel vs. Analog Devices |
| Kura Sushi vs. Jack In The | Kura Sushi vs. Potbelly Co | Kura Sushi vs. BJs Restaurants | Kura Sushi 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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