Correlation Between Kura Sushi and Cheche Group
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Cheche Group 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 Cheche Group 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 Cheche Group Warrant, you can compare the effects of market volatilities on Kura Sushi and Cheche Group 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 Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Cheche Group.
Diversification Opportunities for Kura Sushi and Cheche Group
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kura and Cheche is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Cheche Group Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Warrant 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 Cheche Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheche Group Warrant has no effect on the direction of Kura Sushi i.e., Kura Sushi and Cheche Group go up and down completely randomly.
Pair Corralation between Kura Sushi and Cheche Group
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.47 times more return on investment than Cheche Group. However, Kura Sushi USA is 2.11 times less risky than Cheche Group. It trades about 0.24 of its potential returns per unit of risk. Cheche Group Warrant is currently generating about 0.01 per unit of risk. If you would invest 6,149 in Kura Sushi USA on August 31, 2024 and sell it today you would earn a total of 4,421 from holding Kura Sushi USA or generate 71.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. Cheche Group Warrant
Performance |
| Timeline |
| Kura Sushi USA |
| Cheche Group Warrant |
Kura Sushi and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Cheche Group
The main advantage of trading using opposite Kura Sushi and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Cheche Group 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 Cheche Group will offset losses from the drop in Cheche Group's long position.| Kura Sushi vs. Wingstop | Kura Sushi vs. The Wendys Co | Kura Sushi vs. RLJ Lodging Trust | Kura Sushi vs. Aquagold International |
| Cheche Group vs. United Parks Resorts | Cheche Group vs. NiSource | Cheche Group vs. Transportadora de Gas | Cheche Group vs. Antero Midstream Partners |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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