Correlation Between Second Sight and Kura Sushi

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

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

Diversification Opportunities for Second Sight and Kura Sushi

0.0

Correlation Coefficient

Second Sight  Kura Sushi

Pay attention - limited upside

The 3 months correlation between Second and Kura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Second Sight Medical 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 Second Sight 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 Second Sight Medical 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 Second Sight i.e., Second Sight and Kura Sushi go up and down completely randomly.

Pair Corralation between Second Sight and Kura Sushi

If you would invest  414.00  in Second Sight Medical on February 7, 2024 and sell it today you would earn a total of  0.00  from holding Second Sight Medical or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Second Sight Medical  vs.  Kura Sushi USA

Second Sight Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Second Sight Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Second Sight is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Kura Sushi USA

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kura Sushi USA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Kura Sushi may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Second Sight and Kura Sushi

The main advantage of trading using opposite Second Sight and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Second Sight 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 Second Sight Medical 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..