Correlation Between Kura Sushi and ZEEKR Intelligent

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

Diversification Opportunities for Kura Sushi and ZEEKR Intelligent

-0.04

Correlation Coefficient

Kura Sushi  ZEEKR Intelligent

Good diversification

The 3 months correlation between Kura and ZEEKR is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent 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 ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of Kura Sushi i.e., Kura Sushi and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between Kura Sushi and ZEEKR Intelligent

Given the investment horizon of 90 days Kura Sushi USA is expected to under-perform the ZEEKR Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, Kura Sushi USA is 1.25 times less risky than ZEEKR Intelligent. The stock trades about -0.21 of its potential returns per unit of risk. The ZEEKR Intelligent Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,755  in ZEEKR Intelligent Technology on December 20, 2024 and sell it today you would earn a total of  69.00  from holding ZEEKR Intelligent Technology or generate 2.5% return on investment over 90 days.

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

Kura Sushi USA  vs.  ZEEKR Intelligent Technology

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.

ZEEKR Intelligent

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, ZEEKR Intelligent may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Kura Sushi and ZEEKR Intelligent

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

The idea behind Kura Sushi USA and ZEEKR Intelligent Technology 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.