Correlation Between FactSet Research and Kura Sushi

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

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

Diversification Opportunities for FactSet Research and Kura Sushi

0.29

Correlation Coefficient

FactSet Research  Kura Sushi

Modest diversification

The 3 months correlation between FactSet and Kura is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems 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 FactSet Research 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 FactSet Research Systems 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 FactSet Research i.e., FactSet Research and Kura Sushi go up and down completely randomly.

Pair Corralation between FactSet Research and Kura Sushi

Considering the 90-day investment horizon FactSet Research Systems is expected to generate 0.18 times more return on investment than Kura Sushi. However, FactSet Research Systems is 5.46 times less risky than Kura Sushi. It trades about -0.38 of its potential returns per unit of risk. Kura Sushi USA is currently generating about -0.23 per unit of risk. If you would invest  48,934  in FactSet Research Systems on October 22, 2024 and sell it today you would lose (2,635) from holding FactSet Research Systems or give up 5.38% of portfolio value over 90 days.

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

FactSet Research Systems  vs.  Kura Sushi USA

FactSet Research Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FactSet Research Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, FactSet Research is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Kura Sushi USA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kura Sushi USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with FactSet Research and Kura Sushi

The main advantage of trading using opposite FactSet Research and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research 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 FactSet Research Systems 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.