Correlation Between Kura Sushi and AMREP
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and AMREP 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 AMREP 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 AMREP, you can compare the effects of market volatilities on Kura Sushi and AMREP 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 AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and AMREP.
Diversification Opportunities for Kura Sushi and AMREP
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kura and AMREP is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP 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 AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Kura Sushi i.e., Kura Sushi and AMREP go up and down completely randomly.
Pair Corralation between Kura Sushi and AMREP
Given the investment horizon of 90 days Kura Sushi is expected to generate 1.16 times less return on investment than AMREP. In addition to that, Kura Sushi is 1.47 times more volatile than AMREP. It trades about 0.05 of its total potential returns per unit of risk. AMREP is currently generating about 0.09 per unit of volatility. If you would invest 1,136 in AMREP on September 14, 2024 and sell it today you would earn a total of 2,413 from holding AMREP or generate 212.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kura Sushi USA vs. AMREP
Performance |
| Timeline |
| Kura Sushi USA |
| AMREP |
Kura Sushi and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and AMREP
The main advantage of trading using opposite Kura Sushi and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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