Correlation Between Kura Sushi and Semtech
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Semtech 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 Semtech 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 Semtech, you can compare the effects of market volatilities on Kura Sushi and Semtech 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 Semtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Semtech.
Diversification Opportunities for Kura Sushi and Semtech
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kura and Semtech is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Semtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semtech 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 Semtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semtech has no effect on the direction of Kura Sushi i.e., Kura Sushi and Semtech go up and down completely randomly.
Pair Corralation between Kura Sushi and Semtech
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.5 times more return on investment than Semtech. However, Kura Sushi USA is 2.02 times less risky than Semtech. It trades about -0.12 of its potential returns per unit of risk. Semtech is currently generating about -0.21 per unit of risk. If you would invest 7,533 in Kura Sushi USA on November 28, 2024 and sell it today you would lose (853.00) from holding Kura Sushi USA or give up 11.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. Semtech
Performance |
| Timeline |
| Kura Sushi USA |
| Semtech |
Kura Sushi and Semtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Semtech
The main advantage of trading using opposite Kura Sushi and Semtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Semtech 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 Semtech will offset losses from the drop in Semtech's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated | Semtech vs. MACOM Technology Solutions | Semtech vs. Cirrus Logic |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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