Correlation Between Oasis Hotel and Shake Shack
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel 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 Oasis Hotel and Shake Shack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Shake Shack, you can compare the effects of market volatilities on Oasis Hotel 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 Oasis Hotel with a short position of Shake Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Shake Shack.
Diversification Opportunities for Oasis Hotel and Shake Shack
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Shake is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and Shake Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shake Shack and Oasis Hotel 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 Oasis Hotel Resort 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 Oasis Hotel i.e., Oasis Hotel and Shake Shack go up and down completely randomly.
Pair Corralation between Oasis Hotel and Shake Shack
If you would invest 11,362 in Shake Shack on August 30, 2024 and sell it today you would earn a total of 1,873 from holding Shake Shack or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oasis Hotel Resort vs. Shake Shack
Performance |
| Timeline |
| Oasis Hotel Resort |
| Shake Shack |
Oasis Hotel and Shake Shack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and Shake Shack
The main advantage of trading using opposite Oasis Hotel and Shake Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel 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.| Oasis Hotel vs. Apple Inc | Oasis Hotel vs. Microsoft | Oasis Hotel vs. Alphabet Inc Class C | Oasis Hotel vs. Meta Platforms |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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