Correlation Between Kura Sushi and FormFactor
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and FormFactor 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 FormFactor 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 FormFactor, you can compare the effects of market volatilities on Kura Sushi and FormFactor 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 FormFactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and FormFactor.
Diversification Opportunities for Kura Sushi and FormFactor
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kura and FormFactor is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and FormFactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormFactor 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 FormFactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FormFactor has no effect on the direction of Kura Sushi i.e., Kura Sushi and FormFactor go up and down completely randomly.
Pair Corralation between Kura Sushi and FormFactor
Given the investment horizon of 90 days Kura Sushi USA is expected to under-perform the FormFactor. In addition to that, Kura Sushi is 1.39 times more volatile than FormFactor. It trades about -0.12 of its total potential returns per unit of risk. FormFactor is currently generating about -0.15 per unit of volatility. If you would invest 3,826 in FormFactor on November 28, 2024 and sell it today you would lose (365.00) from holding FormFactor or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. FormFactor
Performance |
| Timeline |
| Kura Sushi USA |
| FormFactor |
Kura Sushi and FormFactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and FormFactor
The main advantage of trading using opposite Kura Sushi and FormFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, FormFactor 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 FormFactor will offset losses from the drop in FormFactor's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| FormFactor vs. Silicon Laboratories | FormFactor vs. Diodes Incorporated | FormFactor vs. MACOM Technology Solutions | FormFactor vs. Amkor Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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