Correlation Between Kura Sushi and Saratoga Investment
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Saratoga Investment 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 Saratoga Investment 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 Saratoga Investment Corp, you can compare the effects of market volatilities on Kura Sushi and Saratoga Investment 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 Saratoga Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Saratoga Investment.
Diversification Opportunities for Kura Sushi and Saratoga Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kura and Saratoga is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Saratoga Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investment Corp 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 Saratoga Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investment Corp has no effect on the direction of Kura Sushi i.e., Kura Sushi and Saratoga Investment go up and down completely randomly.
Pair Corralation between Kura Sushi and Saratoga Investment
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 15.69 times more return on investment than Saratoga Investment. However, Kura Sushi is 15.69 times more volatile than Saratoga Investment Corp. It trades about 0.05 of its potential returns per unit of risk. Saratoga Investment Corp is currently generating about 0.15 per unit of risk. If you would invest 6,630 in Kura Sushi USA on August 31, 2024 and sell it today you would earn a total of 3,940 from holding Kura Sushi USA or generate 59.43% 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. Saratoga Investment Corp
Performance |
| Timeline |
| Kura Sushi USA |
| Saratoga Investment Corp |
Kura Sushi and Saratoga Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Saratoga Investment
The main advantage of trading using opposite Kura Sushi and Saratoga Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Saratoga Investment 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 Saratoga Investment will offset losses from the drop in Saratoga Investment's long position.| Kura Sushi vs. Wingstop | Kura Sushi vs. RLJ Lodging Trust | Kura Sushi vs. Aquagold International | Kura Sushi vs. Stepstone Group |
| Saratoga Investment vs. Kura Sushi USA | Saratoga Investment vs. Western Asset Investment | Saratoga Investment vs. Dennys Corp | Saratoga Investment vs. Rave Restaurant 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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