Correlation Between Kura Sushi and United Guardian
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and United Guardian 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 United Guardian 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 United Guardian, you can compare the effects of market volatilities on Kura Sushi and United Guardian 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 United Guardian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and United Guardian.
Diversification Opportunities for Kura Sushi and United Guardian
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kura and United is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and United Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Guardian 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 United Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Guardian has no effect on the direction of Kura Sushi i.e., Kura Sushi and United Guardian go up and down completely randomly.
Pair Corralation between Kura Sushi and United Guardian
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 1.32 times more return on investment than United Guardian. However, Kura Sushi is 1.32 times more volatile than United Guardian. It trades about 0.03 of its potential returns per unit of risk. United Guardian is currently generating about 0.02 per unit of risk. If you would invest 6,262 in Kura Sushi USA on November 19, 2024 and sell it today you would earn a total of 1,482 from holding Kura Sushi USA or generate 23.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Sushi USA vs. United Guardian
Performance |
| Timeline |
| Kura Sushi USA |
| United Guardian |
Kura Sushi and United Guardian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and United Guardian
The main advantage of trading using opposite Kura Sushi and United Guardian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, United Guardian 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 United Guardian will offset losses from the drop in United Guardian's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| United Guardian vs. Utah Medical Products | United Guardian vs. Union Bankshares | United Guardian vs. Unity Bancorp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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