Correlation Between Kura Sushi and Marstons PLC
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Marstons PLC 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 Marstons PLC 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 Marstons PLC, you can compare the effects of market volatilities on Kura Sushi and Marstons PLC 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 Marstons PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Marstons PLC.
Diversification Opportunities for Kura Sushi and Marstons PLC
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kura and Marstons is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Marstons PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marstons PLC 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 Marstons PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marstons PLC has no effect on the direction of Kura Sushi i.e., Kura Sushi and Marstons PLC go up and down completely randomly.
Pair Corralation between Kura Sushi and Marstons PLC
Given the investment horizon of 90 days Kura Sushi is expected to generate 2.07 times less return on investment than Marstons PLC. In addition to that, Kura Sushi is 1.18 times more volatile than Marstons PLC. It trades about 0.03 of its total potential returns per unit of risk. Marstons PLC is currently generating about 0.09 per unit of volatility. If you would invest 39.00 in Marstons PLC on September 3, 2024 and sell it today you would earn a total of 17.00 from holding Marstons PLC or generate 43.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Kura Sushi USA vs. Marstons PLC
Performance |
| Timeline |
| Kura Sushi USA |
| Marstons PLC |
Kura Sushi and Marstons PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Marstons PLC
The main advantage of trading using opposite Kura Sushi and Marstons PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Marstons PLC 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 Marstons PLC will offset losses from the drop in Marstons PLC's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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