Correlation Between Kura Sushi and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Concrete Pumping 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 Concrete Pumping 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 Concrete Pumping Holdings, you can compare the effects of market volatilities on Kura Sushi and Concrete Pumping 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 Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Concrete Pumping.
Diversification Opportunities for Kura Sushi and Concrete Pumping
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kura and Concrete is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings 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 Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Kura Sushi i.e., Kura Sushi and Concrete Pumping go up and down completely randomly.
Pair Corralation between Kura Sushi and Concrete Pumping
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.21 times more return on investment than Concrete Pumping. However, Kura Sushi USA is 4.78 times less risky than Concrete Pumping. It trades about 0.05 of its potential returns per unit of risk. Concrete Pumping Holdings is currently generating about -0.01 per unit of risk. If you would invest 6,411 in Kura Sushi USA on August 29, 2024 and sell it today you would earn a total of 4,127 from holding Kura Sushi USA or generate 64.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 13.49% |
| Values | Daily Returns |
Kura Sushi USA vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Kura Sushi USA |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kura Sushi and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Concrete Pumping
The main advantage of trading using opposite Kura Sushi and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Concrete Pumping vs. Peoples Educational Holdings | Concrete Pumping vs. Ihuman Inc | Concrete Pumping vs. East Africa Metals | Concrete Pumping vs. Lion One Metals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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