Correlation Between SNDL and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both SNDL 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 SNDL and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and Kura Sushi USA, you can compare the effects of market volatilities on SNDL 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 SNDL with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Kura Sushi.
Diversification Opportunities for SNDL and Kura Sushi
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SNDL and Kura is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc 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 SNDL 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 SNDL Inc 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 SNDL i.e., SNDL and Kura Sushi go up and down completely randomly.
Pair Corralation between SNDL and Kura Sushi
Given the investment horizon of 90 days SNDL Inc is expected to under-perform the Kura Sushi. But the stock apears to be less risky and, when comparing its historical volatility, SNDL Inc is 1.58 times less risky than Kura Sushi. The stock trades about -0.01 of its potential returns per unit of risk. The Kura Sushi USA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,951 in Kura Sushi USA on August 28, 2024 and sell it today you would earn a total of 677.00 from holding Kura Sushi USA or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNDL Inc vs. Kura Sushi USA
Performance |
| Timeline |
| SNDL Inc |
| Kura Sushi USA |
SNDL and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Kura Sushi
The main advantage of trading using opposite SNDL and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL 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.The idea behind SNDL Inc and Kura Sushi USA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |