Correlation Between Kura Sushi and Boyd Gaming

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

Diversification Opportunities for Kura Sushi and Boyd Gaming

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Kura and Boyd is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kura Sushi USA and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming 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 Boyd Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Gaming has no effect on the direction of Kura Sushi i.e., Kura Sushi and Boyd Gaming go up and down completely randomly.

Pair Corralation between Kura Sushi and Boyd Gaming

Given the investment horizon of 90 days Kura Sushi USA is expected to under-perform the Boyd Gaming. In addition to that, Kura Sushi is 2.15 times more volatile than Boyd Gaming. It trades about -0.1 of its total potential returns per unit of risk. Boyd Gaming is currently generating about -0.02 per unit of volatility. If you would invest  6,317  in Boyd Gaming on January 22, 2024 and sell it today you would lose (51.00) from holding Boyd Gaming or give up 0.81% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Kura Sushi USA  vs.  Boyd Gaming

 Performance 
       Timeline  
Kura Sushi USA 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
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 conflicting basic indicators, Kura Sushi unveiled solid returns over the last few months and may actually be approaching a breakup point.
Boyd Gaming 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Boyd Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Boyd Gaming is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Kura Sushi and Boyd Gaming Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kura Sushi and Boyd Gaming

The main advantage of trading using opposite Kura Sushi and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Sushi position performs unexpectedly, Boyd Gaming 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 Boyd Gaming will offset losses from the drop in Boyd Gaming's long position.
The idea behind Kura Sushi USA and Boyd Gaming 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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