Correlation Between Jayud Global and Shake Shack
Can any of the company-specific risk be diversified away by investing in both Jayud Global and Shake Shack 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 Jayud Global and Shake Shack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jayud Global Logistics and Shake Shack, you can compare the effects of market volatilities on Jayud Global and Shake Shack 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 Jayud Global with a short position of Shake Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayud Global and Shake Shack.
Diversification Opportunities for Jayud Global and Shake Shack
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jayud and Shake is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and Shake Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shake Shack and Jayud Global 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 Jayud Global Logistics are associated (or correlated) with Shake Shack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shake Shack has no effect on the direction of Jayud Global i.e., Jayud Global and Shake Shack go up and down completely randomly.
Pair Corralation between Jayud Global and Shake Shack
Considering the 90-day investment horizon Jayud Global Logistics is expected to generate 3.76 times more return on investment than Shake Shack. However, Jayud Global is 3.76 times more volatile than Shake Shack. It trades about 0.16 of its potential returns per unit of risk. Shake Shack is currently generating about 0.16 per unit of risk. If you would invest 90.00 in Jayud Global Logistics on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Jayud Global Logistics or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jayud Global Logistics vs. Shake Shack
Performance |
| Timeline |
| Jayud Global Logistics |
| Shake Shack |
Jayud Global and Shake Shack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jayud Global and Shake Shack
The main advantage of trading using opposite Jayud Global and Shake Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayud Global position performs unexpectedly, Shake Shack 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 Shake Shack will offset losses from the drop in Shake Shack's long position.The idea behind Jayud Global Logistics and Shake Shack 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.| Shake Shack vs. Wingstop | Shake Shack vs. RLJ Lodging Trust | Shake Shack vs. Aquagold International | Shake Shack vs. Stepstone Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |