Correlation Between Kura Sushi and SALESFORCECOM

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

Diversification Opportunities for Kura Sushi and SALESFORCECOM

-0.68

Correlation Coefficient

Kura Sushi  SALESFORCECOM

Excellent diversification

The 3 months correlation between Kura and SALESFORCECOM is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and SALESFORCECOM INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SALESFORCECOM INC 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 SALESFORCECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SALESFORCECOM INC has no effect on the direction of Kura Sushi i.e., Kura Sushi and SALESFORCECOM go up and down completely randomly.

Pair Corralation between Kura Sushi and SALESFORCECOM

Given the investment horizon of 90 days Kura Sushi USA is expected to under-perform the SALESFORCECOM. In addition to that, Kura Sushi is 3.88 times more volatile than SALESFORCECOM INC. It trades about -0.18 of its total potential returns per unit of risk. SALESFORCECOM INC is currently generating about 0.04 per unit of volatility. If you would invest  7,077  in SALESFORCECOM INC on December 30, 2024 and sell it today you would earn a total of  171.00  from holding SALESFORCECOM INC or generate 2.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Kura Sushi USA  vs.  SALESFORCECOM INC

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.

SALESFORCECOM INC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SALESFORCECOM INC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SALESFORCECOM is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kura Sushi and SALESFORCECOM

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

The idea behind Kura Sushi USA and SALESFORCECOM INC 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.