Correlation Between Shake Shack and BIOGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shake Shack and BIOGEN INC 405, you can compare the effects of market volatilities on Shake Shack and BIOGEN 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 BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and BIOGEN.
Diversification Opportunities for Shake Shack and BIOGEN
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shake and BIOGEN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and BIOGEN INC 405 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN INC 405 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 BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC 405 has no effect on the direction of Shake Shack i.e., Shake Shack and BIOGEN go up and down completely randomly.
Pair Corralation between Shake Shack and BIOGEN
Given the investment horizon of 90 days Shake Shack is expected to generate 8.97 times more return on investment than BIOGEN. However, Shake Shack is 8.97 times more volatile than BIOGEN INC 405. It trades about 0.08 of its potential returns per unit of risk. BIOGEN INC 405 is currently generating about 0.01 per unit of risk. If you would invest 6,859 in Shake Shack on September 12, 2024 and sell it today you would earn a total of 6,469 from holding Shake Shack or generate 94.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Shake Shack vs. BIOGEN INC 405
Performance |
| Timeline |
| Shake Shack |
| BIOGEN INC 405 |
Shake Shack and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and BIOGEN
The main advantage of trading using opposite Shake Shack and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| Shake Shack vs. Noble Romans | Shake Shack vs. Good Times Restaurants | Shake Shack vs. Flanigans Enterprises | Shake Shack vs. FAT Brands |
| BIOGEN vs. Genfit | BIOGEN vs. RCI Hospitality Holdings | BIOGEN vs. Apogee Therapeutics, Common | BIOGEN vs. Shake Shack |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |