Correlation Between Universal Technical and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Universal Technical 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 Universal Technical and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Technical Institute and Kura Sushi USA, you can compare the effects of market volatilities on Universal Technical 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 Universal Technical with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Technical and Kura Sushi.
Diversification Opportunities for Universal Technical and Kura Sushi
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Universal and Kura is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Universal Technical Institute 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 Universal Technical 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 Universal Technical Institute 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 Universal Technical i.e., Universal Technical and Kura Sushi go up and down completely randomly.
Pair Corralation between Universal Technical and Kura Sushi
Considering the 90-day investment horizon Universal Technical Institute is expected to generate 0.59 times more return on investment than Kura Sushi. However, Universal Technical Institute is 1.68 times less risky than Kura Sushi. It trades about 0.16 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.04 per unit of risk. If you would invest 1,537 in Universal Technical Institute on August 31, 2024 and sell it today you would earn a total of 1,050 from holding Universal Technical Institute or generate 68.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Technical Institute vs. Kura Sushi USA
Performance |
| Timeline |
| Universal Technical |
| Kura Sushi USA |
Universal Technical and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Technical and Kura Sushi
The main advantage of trading using opposite Universal Technical and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Technical 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.| Universal Technical vs. Laureate Education | Universal Technical vs. Strategic Education | Universal Technical vs. Grand Canyon Education | Universal Technical vs. American Public Education |
| Kura Sushi vs. RLJ Lodging Trust | Kura Sushi vs. Aquagold International | Kura Sushi vs. Stepstone Group | Kura Sushi vs. Morningstar Unconstrained Allocation |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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