Correlation Between Kura Sushi and Anglo American
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Anglo American 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 Kura Sushi and Anglo American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kura Sushi USA and Anglo American Platinum, you can compare the effects of market volatilities on Kura Sushi and Anglo American 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 Kura Sushi with a short position of Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Anglo American.
Diversification Opportunities for Kura Sushi and Anglo American
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kura and Anglo is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Anglo American Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American Platinum and Kura Sushi 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 Kura Sushi USA are associated (or correlated) with Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American Platinum has no effect on the direction of Kura Sushi i.e., Kura Sushi and Anglo American go up and down completely randomly.
Pair Corralation between Kura Sushi and Anglo American
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 1.29 times more return on investment than Anglo American. However, Kura Sushi is 1.29 times more volatile than Anglo American Platinum. It trades about 0.04 of its potential returns per unit of risk. Anglo American Platinum is currently generating about 0.01 per unit of risk. If you would invest 9,703 in Kura Sushi USA on September 1, 2024 and sell it today you would earn a total of 989.00 from holding Kura Sushi USA or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Kura Sushi USA vs. Anglo American Platinum
Performance |
| Timeline |
| Kura Sushi USA |
| Anglo American Platinum |
Kura Sushi and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Anglo American
The main advantage of trading using opposite Kura Sushi and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American's long position.| Kura Sushi vs. The Wendys Co | Kura Sushi vs. Shake Shack | Kura Sushi vs. Papa Johns International | Kura Sushi vs. Darden Restaurants |
| Anglo American vs. Defiance Silver Corp | Anglo American vs. HUMANA INC | Anglo American vs. SCOR PK | Anglo American vs. Aquagold 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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