Correlation Between Shake Shack and CITIGROUP
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By analyzing existing cross correlation between Shake Shack and CITIGROUP INC 6875, you can compare the effects of market volatilities on Shake Shack and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and CITIGROUP.
Diversification Opportunities for Shake Shack and CITIGROUP
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shake and CITIGROUP is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and CITIGROUP INC 6875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6875 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 6875 has no effect on the direction of Shake Shack i.e., Shake Shack and CITIGROUP go up and down completely randomly.
Pair Corralation between Shake Shack and CITIGROUP
Given the investment horizon of 90 days Shake Shack is expected to generate 1.45 times more return on investment than CITIGROUP. However, Shake Shack is 1.45 times more volatile than CITIGROUP INC 6875. It trades about 0.06 of its potential returns per unit of risk. CITIGROUP INC 6875 is currently generating about 0.01 per unit of risk. If you would invest 5,448 in Shake Shack on November 30, 2024 and sell it today you would earn a total of 5,235 from holding Shake Shack or generate 96.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.99% |
| Values | Daily Returns |
Shake Shack vs. CITIGROUP INC 6875
Performance |
| Timeline |
| Shake Shack |
| CITIGROUP INC 6875 |
Shake Shack and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and CITIGROUP
The main advantage of trading using opposite Shake Shack and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP'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 |
| CITIGROUP vs. The Mosaic | CITIGROUP vs. Mirriad Advertising plc | CITIGROUP vs. Entravision Communications | CITIGROUP vs. Boston Omaha Corp |
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.
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