Correlation Between Kura Sushi and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Dine Brands 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 Dine Brands 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 Dine Brands Global, you can compare the effects of market volatilities on Kura Sushi and Dine Brands 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 Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Dine Brands.
Diversification Opportunities for Kura Sushi and Dine Brands
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kura and Dine is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global 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 Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of Kura Sushi i.e., Kura Sushi and Dine Brands go up and down completely randomly.
Pair Corralation between Kura Sushi and Dine Brands
Given the investment horizon of 90 days Kura Sushi USA is expected to under-perform the Dine Brands. In addition to that, Kura Sushi is 1.47 times more volatile than Dine Brands Global. It trades about -0.21 of its total potential returns per unit of risk. Dine Brands Global is currently generating about -0.22 per unit of volatility. If you would invest 3,401 in Dine Brands Global on December 4, 2024 and sell it today you would lose (1,050) from holding Dine Brands Global or give up 30.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kura Sushi USA vs. Dine Brands Global
Performance |
Timeline |
Kura Sushi USA |
Dine Brands Global |
Kura Sushi and Dine Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kura Sushi and Dine Brands
The main advantage of trading using opposite Kura Sushi and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Dine Brands 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 Dine Brands will offset losses from the drop in Dine Brands' long position.Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Money Managers Screen money managers from public funds and ETFs managed around the world |