Correlation Between Marstons PLC and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Marstons PLC and Kura Sushi 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 Marstons PLC and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marstons PLC and Kura Sushi USA, you can compare the effects of market volatilities on Marstons PLC and Kura Sushi 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 Marstons PLC with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marstons PLC and Kura Sushi.
Diversification Opportunities for Marstons PLC and Kura Sushi
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marstons and Kura is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Marstons PLC and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA and Marstons PLC 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 Marstons PLC are associated (or correlated) with Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of Marstons PLC i.e., Marstons PLC and Kura Sushi go up and down completely randomly.
Pair Corralation between Marstons PLC and Kura Sushi
Assuming the 90 days horizon Marstons PLC is expected to generate 0.85 times more return on investment than Kura Sushi. However, Marstons PLC is 1.18 times less risky than Kura Sushi. It trades about 0.09 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.03 per unit of risk. If you would invest 39.00 in Marstons PLC on September 3, 2024 and sell it today you would earn a total of 17.00 from holding Marstons PLC or generate 43.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Marstons PLC vs. Kura Sushi USA
Performance |
| Timeline |
| Marstons PLC |
| Kura Sushi USA |
Marstons PLC and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marstons PLC and Kura Sushi
The main advantage of trading using opposite Marstons PLC and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marstons PLC position performs unexpectedly, Kura Sushi 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 Kura Sushi will offset losses from the drop in Kura Sushi's long position.| Marstons PLC vs. Bagger Daves Burger | Marstons PLC vs. Flanigans Enterprises | Marstons PLC vs. Ark Restaurants Corp | Marstons PLC vs. Spot Coffee |
| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |