Correlation Between Kura Sushi and Good Times
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Good Times 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 Good Times 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 Good Times Restaurants, you can compare the effects of market volatilities on Kura Sushi and Good Times 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 Good Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Good Times.
Diversification Opportunities for Kura Sushi and Good Times
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kura and Good is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Good Times Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Times Restaurants 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 Good Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Times Restaurants has no effect on the direction of Kura Sushi i.e., Kura Sushi and Good Times go up and down completely randomly.
Pair Corralation between Kura Sushi and Good Times
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 2.53 times more return on investment than Good Times. However, Kura Sushi is 2.53 times more volatile than Good Times Restaurants. It trades about 0.1 of its potential returns per unit of risk. Good Times Restaurants is currently generating about -0.15 per unit of risk. If you would invest 9,856 in Kura Sushi USA on August 27, 2024 and sell it today you would earn a total of 772.00 from holding Kura Sushi USA or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. Good Times Restaurants
Performance |
| Timeline |
| Kura Sushi USA |
| Good Times Restaurants |
Kura Sushi and Good Times Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Good Times
The main advantage of trading using opposite Kura Sushi and Good Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Good Times 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 Good Times will offset losses from the drop in Good Times' long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Good Times vs. Nathans Famous | Good Times vs. FAT Brands | Good Times vs. El Pollo Loco | Good Times vs. Ark Restaurants Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |