Correlation Between Franchise and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Franchise 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 Franchise and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franchise Group and Kura Sushi USA, you can compare the effects of market volatilities on Franchise 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 Franchise with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franchise and Kura Sushi.
Diversification Opportunities for Franchise and Kura Sushi
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franchise and Kura is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Franchise 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 Franchise 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 Franchise 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 Franchise i.e., Franchise and Kura Sushi go up and down completely randomly.
Pair Corralation between Franchise and Kura Sushi
If you would invest 10,285 in Kura Sushi USA on August 30, 2024 and sell it today you would earn a total of 285.00 from holding Kura Sushi USA or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Franchise Group vs. Kura Sushi USA
Performance |
| Timeline |
| Franchise Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kura Sushi USA |
Franchise and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franchise and Kura Sushi
The main advantage of trading using opposite Franchise and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franchise 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.| Franchise vs. Alvotech | Franchise vs. Microbot Medical | Franchise vs. Teleflex Incorporated | Franchise vs. Amgen Inc |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |