Correlation Between Shake Shack and Evertz Technologies
Can any of the company-specific risk be diversified away by investing in both Shake Shack and Evertz Technologies 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 Shake Shack and Evertz Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shake Shack and Evertz Technologies Limited, you can compare the effects of market volatilities on Shake Shack and Evertz Technologies 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 Shake Shack with a short position of Evertz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and Evertz Technologies.
Diversification Opportunities for Shake Shack and Evertz Technologies
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shake and Evertz is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and Evertz Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertz Technologies and Shake Shack 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 Shake Shack are associated (or correlated) with Evertz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertz Technologies has no effect on the direction of Shake Shack i.e., Shake Shack and Evertz Technologies go up and down completely randomly.
Pair Corralation between Shake Shack and Evertz Technologies
If you would invest 12,247 in Shake Shack on August 31, 2024 and sell it today you would earn a total of 988.00 from holding Shake Shack or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shake Shack vs. Evertz Technologies Limited
Performance |
| Timeline |
| Shake Shack |
| Evertz Technologies |
Shake Shack and Evertz Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and Evertz Technologies
The main advantage of trading using opposite Shake Shack and Evertz Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, Evertz Technologies 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 Evertz Technologies will offset losses from the drop in Evertz Technologies' long position.| Shake Shack vs. Wingstop | Shake Shack vs. RLJ Lodging Trust | Shake Shack vs. Aquagold International | Shake Shack vs. Stepstone Group |
| Evertz Technologies vs. Boxlight Corp Class | Evertz Technologies vs. Siyata Mobile | Evertz Technologies vs. ClearOne |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |