Correlation Between Kura Sushi and SBC Medical
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and SBC Medical 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 SBC Medical 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 SBC Medical Group, you can compare the effects of market volatilities on Kura Sushi and SBC Medical 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 SBC Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and SBC Medical.
Diversification Opportunities for Kura Sushi and SBC Medical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kura and SBC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and SBC Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBC Medical Group 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 SBC Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBC Medical Group has no effect on the direction of Kura Sushi i.e., Kura Sushi and SBC Medical go up and down completely randomly.
Pair Corralation between Kura Sushi and SBC Medical
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.63 times more return on investment than SBC Medical. However, Kura Sushi USA is 1.6 times less risky than SBC Medical. It trades about 0.03 of its potential returns per unit of risk. SBC Medical Group is currently generating about -0.14 per unit of risk. If you would invest 10,183 in Kura Sushi USA on October 9, 2024 and sell it today you would earn a total of 118.00 from holding Kura Sushi USA or generate 1.16% 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. SBC Medical Group
Performance |
| Timeline |
| Kura Sushi USA |
| SBC Medical Group |
Kura Sushi and SBC Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and SBC Medical
The main advantage of trading using opposite Kura Sushi and SBC Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, SBC Medical 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 SBC Medical will offset losses from the drop in SBC Medical's long position.| Kura Sushi vs. Chipotle Mexican Grill | Kura Sushi vs. Yum Brands | Kura Sushi vs. The Wendys Co | Kura Sushi vs. Wingstop |
| SBC Medical vs. Lucid Group | SBC Medical vs. BorgWarner | SBC Medical vs. Cars Inc | SBC Medical vs. Where Food Comes |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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