Correlation Between Kura Sushi and Liberty Media
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Liberty Media 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 Liberty Media 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 Liberty Media, you can compare the effects of market volatilities on Kura Sushi and Liberty Media 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 Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Liberty Media.
Diversification Opportunities for Kura Sushi and Liberty Media
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kura and Liberty is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media 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 Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media has no effect on the direction of Kura Sushi i.e., Kura Sushi and Liberty Media go up and down completely randomly.
Pair Corralation between Kura Sushi and Liberty Media
Given the investment horizon of 90 days Kura Sushi is expected to generate 1.9 times less return on investment than Liberty Media. In addition to that, Kura Sushi is 1.46 times more volatile than Liberty Media. It trades about 0.15 of its total potential returns per unit of risk. Liberty Media is currently generating about 0.42 per unit of volatility. If you would invest 5,646 in Liberty Media on September 3, 2024 and sell it today you would earn a total of 1,523 from holding Liberty Media or generate 26.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. Liberty Media
Performance |
| Timeline |
| Kura Sushi USA |
| Liberty Media |
Kura Sushi and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Liberty Media
The main advantage of trading using opposite Kura Sushi and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Liberty Media 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 Liberty Media will offset losses from the drop in Liberty Media's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Liberty Media vs. Chester Mining | Liberty Media vs. Westrock Coffee | Liberty Media vs. National Beverage Corp | Liberty Media vs. Thai Beverage PCL |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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