Correlation Between Kura Sushi and ArcelorMittal

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

Diversification Opportunities for Kura Sushi and ArcelorMittal

-0.53

Correlation Coefficient

Kura Sushi  ArcelorMittal

Excellent diversification

The 3 months correlation between Kura and ArcelorMittal is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and ArcelorMittal SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA ADR 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA ADR has no effect on the direction of Kura Sushi i.e., Kura Sushi and ArcelorMittal go up and down completely randomly.

Pair Corralation between Kura Sushi and ArcelorMittal

Given the investment horizon of 90 days Kura Sushi is expected to generate 4.78 times less return on investment than ArcelorMittal. In addition to that, Kura Sushi is 1.75 times more volatile than ArcelorMittal SA ADR. It trades about 0.01 of its total potential returns per unit of risk. ArcelorMittal SA ADR is currently generating about 0.12 per unit of volatility. If you would invest  2,201  in ArcelorMittal SA ADR on December 5, 2024 and sell it today you would earn a total of  747.00  from holding ArcelorMittal SA ADR or generate 33.94% return on investment over 90 days.

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

Kura Sushi USA  vs.  ArcelorMittal SA ADR

Kura Sushi USA

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ArcelorMittal SA ADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ArcelorMittal SA ADR are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, ArcelorMittal unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kura Sushi and ArcelorMittal

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

The idea behind Kura Sushi USA and ArcelorMittal SA ADR 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 Transaction History module to view history of all your transactions and understand their impact on performance.