Correlation Between Kura Sushi and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Meiwu Technology 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 Meiwu Technology 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 Meiwu Technology Co, you can compare the effects of market volatilities on Kura Sushi and Meiwu Technology 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 Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Meiwu Technology.
Diversification Opportunities for Kura Sushi and Meiwu Technology
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kura and Meiwu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Kura Sushi i.e., Kura Sushi and Meiwu Technology go up and down completely randomly.
Pair Corralation between Kura Sushi and Meiwu Technology
Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.38 times more return on investment than Meiwu Technology. However, Kura Sushi USA is 2.65 times less risky than Meiwu Technology. It trades about 0.02 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about -0.01 per unit of risk. If you would invest 6,346 in Kura Sushi USA on November 28, 2024 and sell it today you would earn a total of 334.00 from holding Kura Sushi USA or generate 5.26% 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. Meiwu Technology Co
Performance |
| Timeline |
| Kura Sushi USA |
| Meiwu Technology |
Kura Sushi and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Sushi and Meiwu Technology
The main advantage of trading using opposite Kura Sushi and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology's long position.| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |