Correlation Between Shake Shack and PT Semen
Can any of the company-specific risk be diversified away by investing in both Shake Shack and PT Semen 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 PT Semen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shake Shack and PT Semen Indonesia, you can compare the effects of market volatilities on Shake Shack and PT Semen 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 PT Semen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and PT Semen.
Diversification Opportunities for Shake Shack and PT Semen
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shake and PSGTF is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and PT Semen Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Semen Indonesia 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 PT Semen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Semen Indonesia has no effect on the direction of Shake Shack i.e., Shake Shack and PT Semen go up and down completely randomly.
Pair Corralation between Shake Shack and PT Semen
If you would invest 23.00 in PT Semen Indonesia on October 25, 2024 and sell it today you would earn a total of 0.00 from holding PT Semen Indonesia or generate 0.0% 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. PT Semen Indonesia
Performance |
| Timeline |
| Shake Shack |
| PT Semen Indonesia |
Shake Shack and PT Semen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and PT Semen
The main advantage of trading using opposite Shake Shack and PT Semen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, PT Semen 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 PT Semen will offset losses from the drop in PT Semen's long position.| Shake Shack vs. Dominos Pizza Common | Shake Shack vs. Papa Johns International | Shake Shack vs. Chipotle Mexican Grill | Shake Shack vs. Darden Restaurants |
| PT Semen vs. SNDL Inc | PT Semen vs. Sellas Life Sciences | PT Semen vs. Vita Coco | PT Semen vs. Diamond Estates Wines |
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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