Correlation Between Kura Sushi and Loandepot

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kura Sushi and Loandepot 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 Loandepot 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 Loandepot, you can compare the effects of market volatilities on Kura Sushi and Loandepot 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 Loandepot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Sushi and Loandepot.

Diversification Opportunities for Kura Sushi and Loandepot

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Kura and Loandepot is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Loandepot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loandepot 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 Loandepot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loandepot has no effect on the direction of Kura Sushi i.e., Kura Sushi and Loandepot go up and down completely randomly.

Pair Corralation between Kura Sushi and Loandepot

Given the investment horizon of 90 days Kura Sushi USA is expected to generate 0.82 times more return on investment than Loandepot. However, Kura Sushi USA is 1.22 times less risky than Loandepot. It trades about 0.08 of its potential returns per unit of risk. Loandepot is currently generating about -0.06 per unit of risk. If you would invest  8,351  in Kura Sushi USA on October 4, 2024 and sell it today you would earn a total of  1,227  from holding Kura Sushi USA or generate 14.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kura Sushi USA  vs.  Loandepot

 Performance 
       Timeline  
Kura Sushi USA 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 6 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan80859095100105110
Loandepot 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Loandepot has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan22.22.42.62.83

Kura Sushi and Loandepot Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kura Sushi and Loandepot

The main advantage of trading using opposite Kura Sushi and Loandepot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Loandepot 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 Loandepot will offset losses from the drop in Loandepot's long position.
The idea behind Kura Sushi USA and Loandepot 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world