Correlation Between 446150AV6 and Kura Sushi

Can any of the company-specific risk be diversified away by investing in both 446150AV6 and Kura Sushi 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 446150AV6 and Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HBAN 445 and Kura Sushi USA, you can compare the effects of market volatilities on 446150AV6 and Kura Sushi 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 446150AV6 with a short position of Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of 446150AV6 and Kura Sushi.

Diversification Opportunities for 446150AV6 and Kura Sushi

-0.03

Correlation Coefficient

446150AV6  Kura Sushi

Good diversification

The 3 months correlation between 446150AV6 and Kura is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding HBAN 445 and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA and 446150AV6 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 HBAN 445 are associated (or correlated) with Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of 446150AV6 i.e., 446150AV6 and Kura Sushi go up and down completely randomly.

Pair Corralation between 446150AV6 and Kura Sushi

Assuming the 90 days trading horizon HBAN 445 is expected to under-perform the Kura Sushi. In addition to that, 446150AV6 is 1.2 times more volatile than Kura Sushi USA. It trades about -0.21 of its total potential returns per unit of risk. Kura Sushi USA is currently generating about -0.04 per unit of volatility. If you would invest  10,397  in Kura Sushi USA on October 6, 2024 and sell it today you would lose (376.00) from holding Kura Sushi USA or give up 3.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

HBAN 445  vs.  Kura Sushi USA

446150AV6

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HBAN 445 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for HBAN 445 investors.

Kura Sushi USA

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 8 (%) 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.

Pair Trading with 446150AV6 and Kura Sushi

The main advantage of trading using opposite 446150AV6 and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 446150AV6 position performs unexpectedly, Kura Sushi 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 Kura Sushi will offset losses from the drop in Kura Sushi's long position.

The idea behind HBAN 445 and Kura Sushi USA 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.