Correlation Between Kura Sushi and Kaltura
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Kaltura 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 Kaltura 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 Kaltura, you can compare the effects of market volatilities on Kura Sushi and Kaltura 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 Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Kaltura.
Diversification Opportunities for Kura Sushi and Kaltura
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kura and Kaltura is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura 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 Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Kura Sushi i.e., Kura Sushi and Kaltura go up and down completely randomly.
Pair Corralation between Kura Sushi and Kaltura
Given the investment horizon of 90 days Kura Sushi is expected to generate 6.08 times less return on investment than Kaltura. But when comparing it to its historical volatility, Kura Sushi USA is 1.24 times less risky than Kaltura. It trades about 0.09 of its potential returns per unit of risk. Kaltura is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 131.00 in Kaltura on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Kaltura or generate 65.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. Kaltura
Performance |
| Timeline |
| Kura Sushi USA |
| Kaltura |
Kura Sushi and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Kaltura
The main advantage of trading using opposite Kura Sushi and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Kaltura 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 Kaltura will offset losses from the drop in Kaltura's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |