Correlation Between Kura Sushi and Ihuman
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Ihuman 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 Ihuman 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 Ihuman Inc, you can compare the effects of market volatilities on Kura Sushi and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Ihuman.
Diversification Opportunities for Kura Sushi and Ihuman
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kura and Ihuman is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Kura Sushi i.e., Kura Sushi and Ihuman go up and down completely randomly.
Pair Corralation between Kura Sushi and Ihuman
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 1.02 times more return on investment than Ihuman. However, Kura Sushi is 1.02 times more volatile than Ihuman Inc. It trades about 0.05 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.0 per unit of risk. If you would invest 4,922 in Kura Sushi USA on September 14, 2024 and sell it today you would earn a total of 5,099 from holding Kura Sushi USA or generate 103.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kura Sushi USA vs. Ihuman Inc
Performance |
| Timeline |
| Kura Sushi USA |
| Ihuman Inc |
Kura Sushi and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Ihuman
The main advantage of trading using opposite Kura Sushi and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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