Correlation Between Flag Ship and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Flag Ship 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 Flag Ship and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flag Ship Acquisition and Kura Sushi USA, you can compare the effects of market volatilities on Flag Ship 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 Flag Ship with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flag Ship and Kura Sushi.
Diversification Opportunities for Flag Ship and Kura Sushi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flag and Kura is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Flag Ship Acquisition 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 Flag Ship 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 Flag Ship Acquisition 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 Flag Ship i.e., Flag Ship and Kura Sushi go up and down completely randomly.
Pair Corralation between Flag Ship and Kura Sushi
Given the investment horizon of 90 days Flag Ship is expected to generate 10.01 times less return on investment than Kura Sushi. But when comparing it to its historical volatility, Flag Ship Acquisition is 31.65 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 of returns per unit of risk over similar time horizon. If you would invest 9,865 in Kura Sushi USA on August 31, 2024 and sell it today you would earn a total of 705.00 from holding Kura Sushi USA or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flag Ship Acquisition vs. Kura Sushi USA
Performance |
| Timeline |
| Flag Ship Acquisition |
| Kura Sushi USA |
Flag Ship and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flag Ship and Kura Sushi
The main advantage of trading using opposite Flag Ship and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flag Ship 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.| Flag Ship vs. CAVA Group, | Flag Ship vs. Dennys Corp | Flag Ship vs. Kura Sushi USA | Flag Ship vs. United Homes Group |
| Kura Sushi vs. RLJ Lodging Trust | Kura Sushi vs. Aquagold International | Kura Sushi vs. Stepstone Group | Kura Sushi vs. Morningstar Unconstrained Allocation |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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