Correlation Between Kura Sushi and Chr Hansen

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

By analyzing existing cross correlation between Kura Sushi USA and Chr Hansen Holding, you can compare the effects of market volatilities on Kura Sushi and Chr Hansen 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 Chr Hansen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Chr Hansen.

Diversification Opportunities for Kura Sushi and Chr Hansen

-0.62

Correlation Coefficient

Kura Sushi  Chr Hansen

Excellent diversification

The 3 months correlation between Kura and Chr is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Chr Hansen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chr Hansen Holding 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 USA are associated (or correlated) with Chr Hansen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chr Hansen Holding has no effect on the direction of Kura Sushi i.e., Kura Sushi and Chr Hansen go up and down completely randomly.

Pair Corralation between Kura Sushi and Chr Hansen

If you would invest  6,149  in Kura Sushi USA on September 3, 2024 and sell it today you would earn a total of  4,543  from holding Kura Sushi USA or generate 73.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Kura Sushi USA  vs.  Chr Hansen Holding

Kura Sushi USA

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Kura Sushi unveiled solid returns over the last few months and may actually be approaching a breakup point.

Chr Hansen Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chr Hansen Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Chr Hansen is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kura Sushi and Chr Hansen

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

The idea behind Kura Sushi USA and Chr Hansen Holding 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.