Correlation Between Kura Sushi and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Grupo Televisa 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 Grupo Televisa 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 Grupo Televisa SAB, you can compare the effects of market volatilities on Kura Sushi and Grupo Televisa 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 Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Grupo Televisa.
Diversification Opportunities for Kura Sushi and Grupo Televisa
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kura and Grupo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB 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 Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of Kura Sushi i.e., Kura Sushi and Grupo Televisa go up and down completely randomly.
Pair Corralation between Kura Sushi and Grupo Televisa
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.86 times more return on investment than Grupo Televisa. However, Kura Sushi USA is 1.16 times less risky than Grupo Televisa. It trades about 0.05 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.04 per unit of risk. If you would invest 8,784 in Kura Sushi USA on September 5, 2024 and sell it today you would earn a total of 1,450 from holding Kura Sushi USA or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Kura Sushi USA vs. Grupo Televisa SAB
Performance |
| Timeline |
| Kura Sushi USA |
| Grupo Televisa SAB |
Kura Sushi and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Grupo Televisa
The main advantage of trading using opposite Kura Sushi and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Grupo Televisa 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 Grupo Televisa will offset losses from the drop in Grupo Televisa's long position.| Kura Sushi vs. Hyatt Hotels | Kura Sushi vs. Smart Share Global | Kura Sushi vs. Sweetgreen | Kura Sushi vs. Wyndham Hotels Resorts |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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