Correlation Between Globalfoundries and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Globalfoundries 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 Globalfoundries and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalfoundries and Kura Sushi USA, you can compare the effects of market volatilities on Globalfoundries 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 Globalfoundries with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalfoundries and Kura Sushi.
Diversification Opportunities for Globalfoundries and Kura Sushi
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Globalfoundries and Kura is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Globalfoundries 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 Globalfoundries 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 Globalfoundries 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 Globalfoundries i.e., Globalfoundries and Kura Sushi go up and down completely randomly.
Pair Corralation between Globalfoundries and Kura Sushi
Considering the 90-day investment horizon Globalfoundries is expected to generate 1.15 times more return on investment than Kura Sushi. However, Globalfoundries is 1.15 times more volatile than Kura Sushi USA. It trades about 0.22 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.13 per unit of risk. If you would invest 3,601 in Globalfoundries on September 5, 2024 and sell it today you would earn a total of 837.00 from holding Globalfoundries or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globalfoundries vs. Kura Sushi USA
Performance |
| Timeline |
| Globalfoundries |
| Kura Sushi USA |
Globalfoundries and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalfoundries and Kura Sushi
The main advantage of trading using opposite Globalfoundries and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalfoundries 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.| Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
| Kura Sushi vs. Hyatt Hotels | Kura Sushi vs. Smart Share Global | Kura Sushi vs. Wyndham Hotels Resorts | Kura Sushi vs. WW International |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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