Correlation Between Jack In and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Jack In 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 Jack In and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack In The and Kura Sushi USA, you can compare the effects of market volatilities on Jack In 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 Jack In with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack In and Kura Sushi.
Diversification Opportunities for Jack In and Kura Sushi
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jack and Kura is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jack In The 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 Jack In 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 Jack In The 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 Jack In i.e., Jack In and Kura Sushi go up and down completely randomly.
Pair Corralation between Jack In and Kura Sushi
Given the investment horizon of 90 days Jack In The is expected to generate 0.4 times more return on investment than Kura Sushi. However, Jack In The is 2.49 times less risky than Kura Sushi. It trades about -0.07 of its potential returns per unit of risk. Kura Sushi USA is currently generating about -0.16 per unit of risk. If you would invest 4,097 in Jack In The on November 2, 2024 and sell it today you would lose (113.00) from holding Jack In The or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack In The vs. Kura Sushi USA
Performance |
| Timeline |
| Jack In |
| Kura Sushi USA |
Jack In and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack In and Kura Sushi
The main advantage of trading using opposite Jack In and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack In 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.| Jack In vs. Dine Brands Global | Jack In vs. Bloomin Brands | Jack In vs. BJs Restaurants | Jack In vs. The Cheesecake Factory |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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