Correlation Between Kura Sushi and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and GEN Restaurant 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 GEN Restaurant 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 GEN Restaurant Group,, you can compare the effects of market volatilities on Kura Sushi and GEN Restaurant 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 GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and GEN Restaurant.
Diversification Opportunities for Kura Sushi and GEN Restaurant
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kura and GEN is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, 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 GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Kura Sushi i.e., Kura Sushi and GEN Restaurant go up and down completely randomly.
Pair Corralation between Kura Sushi and GEN Restaurant
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.9 times more return on investment than GEN Restaurant. However, Kura Sushi USA is 1.12 times less risky than GEN Restaurant. It trades about 0.11 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about -0.05 per unit of risk. If you would invest 9,450 in Kura Sushi USA on August 25, 2024 and sell it today you would earn a total of 919.00 from holding Kura Sushi USA or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. GEN Restaurant Group,
Performance |
| Timeline |
| Kura Sushi USA |
| GEN Restaurant Group, |
Kura Sushi and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and GEN Restaurant
The main advantage of trading using opposite Kura Sushi and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| GEN Restaurant vs. Ultra Clean Holdings | GEN Restaurant vs. NetSol Technologies | GEN Restaurant vs. Infosys Ltd ADR | GEN Restaurant vs. Lion One Metals |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |