Correlation Between Kura Sushi and Fortress Transp
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Fortress Transp 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 Fortress Transp 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 Fortress Transp Infra, you can compare the effects of market volatilities on Kura Sushi and Fortress Transp 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 Fortress Transp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Fortress Transp.
Diversification Opportunities for Kura Sushi and Fortress Transp
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kura and Fortress is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Fortress Transp Infra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Transp Infra 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 Fortress Transp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Transp Infra has no effect on the direction of Kura Sushi i.e., Kura Sushi and Fortress Transp go up and down completely randomly.
Pair Corralation between Kura Sushi and Fortress Transp
Given the investment horizon of 90 days Kura Sushi USA is expected to under-perform the Fortress Transp. In addition to that, Kura Sushi is 1.01 times more volatile than Fortress Transp Infra. It trades about -0.02 of its total potential returns per unit of risk. Fortress Transp Infra is currently generating about 0.1 per unit of volatility. If you would invest 5,819 in Fortress Transp Infra on December 2, 2024 and sell it today you would earn a total of 7,052 from holding Fortress Transp Infra or generate 121.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. Fortress Transp Infra
Performance |
| Timeline |
| Kura Sushi USA |
| Fortress Transp Infra |
Kura Sushi and Fortress Transp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Fortress Transp
The main advantage of trading using opposite Kura Sushi and Fortress Transp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Fortress Transp 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 Fortress Transp will offset losses from the drop in Fortress Transp's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Fortress Transp vs. McGrath RentCorp | Fortress Transp vs. Custom Truck One | Fortress Transp vs. Herc Holdings | Fortress Transp vs. Alta Equipment Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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