Correlation Between Shake Shack and 06406FAC7
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By analyzing existing cross correlation between Shake Shack and BANK NEW YORK, you can compare the effects of market volatilities on Shake Shack and 06406FAC7 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 06406FAC7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and 06406FAC7.
Diversification Opportunities for Shake Shack and 06406FAC7
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shake and 06406FAC7 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and BANK NEW YORK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK NEW YORK 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 06406FAC7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK NEW YORK has no effect on the direction of Shake Shack i.e., Shake Shack and 06406FAC7 go up and down completely randomly.
Pair Corralation between Shake Shack and 06406FAC7
Given the investment horizon of 90 days Shake Shack is expected to generate 1.94 times more return on investment than 06406FAC7. However, Shake Shack is 1.94 times more volatile than BANK NEW YORK. It trades about 0.18 of its potential returns per unit of risk. BANK NEW YORK is currently generating about -0.25 per unit of risk. If you would invest 12,356 in Shake Shack on September 3, 2024 and sell it today you would earn a total of 1,017 from holding Shake Shack or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Shake Shack vs. BANK NEW YORK
Performance |
| Timeline |
| Shake Shack |
| BANK NEW YORK |
Shake Shack and 06406FAC7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and 06406FAC7
The main advantage of trading using opposite Shake Shack and 06406FAC7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, 06406FAC7 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 06406FAC7 will offset losses from the drop in 06406FAC7's long position.| Shake Shack vs. Highway Holdings Limited | Shake Shack vs. QCR Holdings | Shake Shack vs. Partner Communications | Shake Shack vs. Acumen Pharmaceuticals |
| 06406FAC7 vs. AEP TEX INC | 06406FAC7 vs. US BANK NATIONAL | 06406FAC7 vs. Jackson Financial | 06406FAC7 vs. MetLife |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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