Correlation Between Kura Sushi and Dividend

Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Dividend 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 Dividend 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 Dividend 15 Split, you can compare the effects of market volatilities on Kura Sushi and Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Dividend.

Diversification Opportunities for Kura Sushi and Dividend

0.56

Correlation Coefficient

Kura Sushi  Dividend

Very weak diversification

The 3 months correlation between Kura and Dividend is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Kura Sushi i.e., Kura Sushi and Dividend go up and down completely randomly.

Pair Corralation between Kura Sushi and Dividend

Given the investment horizon of 90 days Kura Sushi USA is expected to under-perform the Dividend. In addition to that, Kura Sushi is 4.97 times more volatile than Dividend 15 Split. It trades about -0.04 of its total potential returns per unit of risk. Dividend 15 Split is currently generating about 0.22 per unit of volatility. If you would invest  348.00  in Dividend 15 Split on October 6, 2024 and sell it today you would earn a total of  10.00  from holding Dividend 15 Split or generate 2.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Kura Sushi USA  vs.  Dividend 15 Split

Kura Sushi USA

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 8 (%) 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.

Dividend 15 Split

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Dividend may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Kura Sushi and Dividend

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

The idea behind Kura Sushi USA and Dividend 15 Split 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.