Correlation Between Shake Shack and Thermodynetics
Can any of the company-specific risk be diversified away by investing in both Shake Shack and Thermodynetics 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 Thermodynetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shake Shack and Thermodynetics, you can compare the effects of market volatilities on Shake Shack and Thermodynetics 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 Thermodynetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and Thermodynetics.
Diversification Opportunities for Shake Shack and Thermodynetics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shake and Thermodynetics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and Thermodynetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermodynetics 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 Thermodynetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermodynetics has no effect on the direction of Shake Shack i.e., Shake Shack and Thermodynetics go up and down completely randomly.
Pair Corralation between Shake Shack and Thermodynetics
If you would invest 10,180 in Shake Shack on September 12, 2024 and sell it today you would earn a total of 3,628 from holding Shake Shack or generate 35.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Shake Shack vs. Thermodynetics
Performance |
| Timeline |
| Shake Shack |
| Thermodynetics |
Shake Shack and Thermodynetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and Thermodynetics
The main advantage of trading using opposite Shake Shack and Thermodynetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, Thermodynetics 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 Thermodynetics will offset losses from the drop in Thermodynetics' long position.| Shake Shack vs. Dominos Pizza | Shake Shack vs. Papa Johns International | Shake Shack vs. Chipotle Mexican Grill | Shake Shack vs. Darden Restaurants |
| Thermodynetics vs. Ameriprise Financial | Thermodynetics vs. Diageo PLC ADR | Thermodynetics vs. GameStop Corp | Thermodynetics 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |