Correlation Between Kura Sushi and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Canlan Ice 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 Canlan Ice 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 Canlan Ice Sports, you can compare the effects of market volatilities on Kura Sushi and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Canlan Ice.
Diversification Opportunities for Kura Sushi and Canlan Ice
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kura and Canlan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Kura Sushi i.e., Kura Sushi and Canlan Ice go up and down completely randomly.
Pair Corralation between Kura Sushi and Canlan Ice
If you would invest 10,285 in Kura Sushi USA on August 30, 2024 and sell it today you would earn a total of 285.00 from holding Kura Sushi USA or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kura Sushi USA vs. Canlan Ice Sports
Performance |
| Timeline |
| Kura Sushi USA |
| Canlan Ice Sports |
Kura Sushi and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Canlan Ice
The main advantage of trading using opposite Kura Sushi and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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