Correlation Between Freedom Holding and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Freedom Holding 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 Freedom Holding and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Holding Corp and Kura Sushi USA, you can compare the effects of market volatilities on Freedom Holding 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 Freedom Holding with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Kura Sushi.
Diversification Opportunities for Freedom Holding and Kura Sushi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Freedom and Kura is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp 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 Freedom Holding 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 Freedom Holding Corp 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 Freedom Holding i.e., Freedom Holding and Kura Sushi go up and down completely randomly.
Pair Corralation between Freedom Holding and Kura Sushi
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 0.41 times more return on investment than Kura Sushi. However, Freedom Holding Corp is 2.41 times less risky than Kura Sushi. It trades about 0.29 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.09 per unit of risk. If you would invest 10,646 in Freedom Holding Corp on September 2, 2024 and sell it today you would earn a total of 1,242 from holding Freedom Holding Corp or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. Kura Sushi USA
Performance |
| Timeline |
| Freedom Holding Corp |
| Kura Sushi USA |
Freedom Holding and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Kura Sushi
The main advantage of trading using opposite Freedom Holding and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding 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.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
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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