Correlation Between Neogen and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Neogen 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 Neogen and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and Kura Sushi USA, you can compare the effects of market volatilities on Neogen 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 Neogen with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and Kura Sushi.
Diversification Opportunities for Neogen and Kura Sushi
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neogen and Kura is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Neogen 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 Neogen 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 Neogen 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 Neogen i.e., Neogen and Kura Sushi go up and down completely randomly.
Pair Corralation between Neogen and Kura Sushi
Given the investment horizon of 90 days Neogen is expected to generate 3.99 times less return on investment than Kura Sushi. But when comparing it to its historical volatility, Neogen is 1.53 times less risky than Kura Sushi. It trades about 0.01 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,813 in Kura Sushi USA on August 28, 2024 and sell it today you would earn a total of 815.00 from holding Kura Sushi USA or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neogen vs. Kura Sushi USA
Performance |
| Timeline |
| Neogen |
| Kura Sushi USA |
Neogen and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and Kura Sushi
The main advantage of trading using opposite Neogen and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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.| Neogen vs. Heartbeam | Neogen vs. EUDA Health Holdings | Neogen vs. Nutex Health | Neogen vs. Healthcare Triangle |
| 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.
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