Correlation Between Shake Shack and 226373AT5
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By analyzing existing cross correlation between Shake Shack and CMLP 7375 01 FEB 31, you can compare the effects of market volatilities on Shake Shack and 226373AT5 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 226373AT5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and 226373AT5.
Diversification Opportunities for Shake Shack and 226373AT5
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shake and 226373AT5 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and CMLP 7375 01 FEB 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMLP 7375 01 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 226373AT5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMLP 7375 01 has no effect on the direction of Shake Shack i.e., Shake Shack and 226373AT5 go up and down completely randomly.
Pair Corralation between Shake Shack and 226373AT5
Given the investment horizon of 90 days Shake Shack is expected to generate 18.72 times more return on investment than 226373AT5. However, Shake Shack is 18.72 times more volatile than CMLP 7375 01 FEB 31. It trades about 0.18 of its potential returns per unit of risk. CMLP 7375 01 FEB 31 is currently generating about 0.17 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 | Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
Shake Shack vs. CMLP 7375 01 FEB 31
Performance |
| Timeline |
| Shake Shack |
| CMLP 7375 01 |
Shake Shack and 226373AT5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and 226373AT5
The main advantage of trading using opposite Shake Shack and 226373AT5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, 226373AT5 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 226373AT5 will offset losses from the drop in 226373AT5's long position.| Shake Shack vs. Highway Holdings Limited | Shake Shack vs. QCR Holdings | Shake Shack vs. Partner Communications | Shake Shack vs. Acumen Pharmaceuticals |
| 226373AT5 vs. Kura Sushi USA | 226373AT5 vs. WEBTOON Entertainment Common | 226373AT5 vs. The Wendys Co | 226373AT5 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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