Correlation Between Kura Sushi and Cameo Communications

Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Cameo Communications 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 Kura Sushi and Cameo Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kura Sushi Asia and Cameo Communications, you can compare the effects of market volatilities on Kura Sushi and Cameo Communications 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 Kura Sushi with a short position of Cameo Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Cameo Communications.

Diversification Opportunities for Kura Sushi and Cameo Communications

0.59

Correlation Coefficient

Kura Sushi  Cameo Communications

Very weak diversification

The 3 months correlation between Kura and Cameo is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi Asia and Cameo Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cameo Communications and Kura Sushi 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 Kura Sushi Asia are associated (or correlated) with Cameo Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cameo Communications has no effect on the direction of Kura Sushi i.e., Kura Sushi and Cameo Communications go up and down completely randomly.

Pair Corralation between Kura Sushi and Cameo Communications

Assuming the 90 days trading horizon Kura Sushi Asia is expected to generate 0.37 times more return on investment than Cameo Communications. However, Kura Sushi Asia is 2.71 times less risky than Cameo Communications. It trades about -0.1 of its potential returns per unit of risk. Cameo Communications is currently generating about -0.11 per unit of risk. If you would invest  8,740  in Kura Sushi Asia on December 21, 2024 and sell it today you would lose (380.00) from holding Kura Sushi Asia or give up 4.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Kura Sushi Asia  vs.  Cameo Communications

Kura Sushi Asia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kura Sushi Asia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kura Sushi is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Cameo Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cameo Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Kura Sushi and Cameo Communications

The main advantage of trading using opposite Kura Sushi and Cameo Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Cameo Communications 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 Cameo Communications will offset losses from the drop in Cameo Communications' long position.

The idea behind Kura Sushi Asia and Cameo Communications 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.