Correlation Between Hyatt Hotels and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Hyatt Hotels 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 Hyatt Hotels and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyatt Hotels and Kura Sushi USA, you can compare the effects of market volatilities on Hyatt Hotels 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 Hyatt Hotels with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyatt Hotels and Kura Sushi.
Diversification Opportunities for Hyatt Hotels and Kura Sushi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyatt and Kura is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hyatt Hotels 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 Hyatt Hotels 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 Hyatt Hotels 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 Hyatt Hotels i.e., Hyatt Hotels and Kura Sushi go up and down completely randomly.
Pair Corralation between Hyatt Hotels and Kura Sushi
Taking into account the 90-day investment horizon Hyatt Hotels is expected to generate 3.9 times less return on investment than Kura Sushi. But when comparing it to its historical volatility, Hyatt Hotels is 2.17 times less risky than Kura Sushi. It trades about 0.08 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 9,103 in Kura Sushi USA on September 13, 2024 and sell it today you would earn a total of 936.00 from holding Kura Sushi USA or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyatt Hotels vs. Kura Sushi USA
Performance |
| Timeline |
| Hyatt Hotels |
| Kura Sushi USA |
Hyatt Hotels and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyatt Hotels and Kura Sushi
The main advantage of trading using opposite Hyatt Hotels and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyatt Hotels 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.| Hyatt Hotels vs. Yatra Online | Hyatt Hotels vs. Despegar Corp | Hyatt Hotels vs. Mondee Holdings | Hyatt Hotels vs. MakeMyTrip Limited |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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