Correlation Between Kura Sushi and NI Holdings
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and NI Holdings 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 NI Holdings 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 NI Holdings, you can compare the effects of market volatilities on Kura Sushi and NI Holdings 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 NI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and NI Holdings.
Diversification Opportunities for Kura Sushi and NI Holdings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kura and NODK is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and NI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NI Holdings 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 NI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NI Holdings has no effect on the direction of Kura Sushi i.e., Kura Sushi and NI Holdings go up and down completely randomly.
Pair Corralation between Kura Sushi and NI Holdings
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 2.57 times more return on investment than NI Holdings. However, Kura Sushi is 2.57 times more volatile than NI Holdings. It trades about 0.04 of its potential returns per unit of risk. NI Holdings is currently generating about 0.02 per unit of risk. If you would invest 8,476 in Kura Sushi USA on August 31, 2024 and sell it today you would earn a total of 2,216 from holding Kura Sushi USA or generate 26.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. NI Holdings
Performance |
| Timeline |
| Kura Sushi USA |
| NI Holdings |
Kura Sushi and NI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and NI Holdings
The main advantage of trading using opposite Kura Sushi and NI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, NI Holdings 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 NI Holdings will offset losses from the drop in NI Holdings' long position.| Kura Sushi vs. RLJ Lodging Trust | Kura Sushi vs. Aquagold International | Kura Sushi vs. Stepstone Group | Kura Sushi vs. Morningstar Unconstrained Allocation |
| NI Holdings vs. Horace Mann Educators | NI Holdings vs. Donegal Group A | NI Holdings vs. Global Indemnity PLC | NI Holdings vs. Selective Insurance Group |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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