Correlation Between One Group and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both One Group 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 One Group and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Group Hospitality and Kura Sushi USA, you can compare the effects of market volatilities on One Group 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 One Group with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Group and Kura Sushi.
Diversification Opportunities for One Group and Kura Sushi
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between One and Kura is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding One Group Hospitality 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 One Group 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 One Group Hospitality 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 One Group i.e., One Group and Kura Sushi go up and down completely randomly.
Pair Corralation between One Group and Kura Sushi
Given the investment horizon of 90 days One Group Hospitality is expected to under-perform the Kura Sushi. But the stock apears to be less risky and, when comparing its historical volatility, One Group Hospitality is 1.66 times less risky than Kura Sushi. The stock trades about -0.43 of its potential returns per unit of risk. The Kura Sushi USA is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 7,533 in Kura Sushi USA on November 27, 2024 and sell it today you would lose (1,062) from holding Kura Sushi USA or give up 14.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Group Hospitality vs. Kura Sushi USA
Performance |
| Timeline |
| One Group Hospitality |
| Kura Sushi USA |
One Group and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Group and Kura Sushi
The main advantage of trading using opposite One Group and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Group 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.| One Group vs. FAT Brands | One Group vs. Potbelly Co | One Group vs. BJs Restaurants | One Group vs. Rave Restaurant Group |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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