Correlation Between Kura Sushi and SOUTHERN

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

Diversification Opportunities for Kura Sushi and SOUTHERN

0.08

Correlation Coefficient

Kura Sushi  SOUTHERN

Significant diversification

The 3 months correlation between Kura and SOUTHERN is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and SOUTHERN PER CORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN PER P 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN PER P has no effect on the direction of Kura Sushi i.e., Kura Sushi and SOUTHERN go up and down completely randomly.

Pair Corralation between Kura Sushi and SOUTHERN

If you would invest  0.00  in SOUTHERN PER CORP on October 21, 2024 and sell it today you would earn a total of  0.00  from holding SOUTHERN PER CORP or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	2.5%
Values	Daily Returns

Kura Sushi USA  vs.  SOUTHERN PER CORP

Kura Sushi USA

Risk-Adjusted Performance

0 of 100

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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SOUTHERN PER P

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days SOUTHERN PER CORP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SOUTHERN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kura Sushi and SOUTHERN

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

The idea behind Kura Sushi USA and SOUTHERN PER CORP 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.