Correlation Between Kura Sushi and Gap,
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Gap, 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 Gap, 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 The Gap,, you can compare the effects of market volatilities on Kura Sushi and Gap, 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 Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Gap,.
Diversification Opportunities for Kura Sushi and Gap,
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kura and Gap, is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of Kura Sushi i.e., Kura Sushi and Gap, go up and down completely randomly.
Pair Corralation between Kura Sushi and Gap,
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 1.26 times more return on investment than Gap,. However, Kura Sushi is 1.26 times more volatile than The Gap,. It trades about 0.06 of its potential returns per unit of risk. The Gap, is currently generating about 0.04 per unit of risk. If you would invest 6,929 in Kura Sushi USA on September 12, 2024 and sell it today you would earn a total of 3,388 from holding Kura Sushi USA or generate 48.9% 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. The Gap,
Performance |
| Timeline |
| Kura Sushi USA |
| Gap, |
Kura Sushi and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Gap,
The main advantage of trading using opposite Kura Sushi and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'s long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Gap, vs. Playtika Holding Corp | Gap, vs. Xponential Fitness | Gap, vs. Lululemon Athletica | Gap, vs. Skechers USA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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