Correlation Between Shake Shack and DTRGR
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By analyzing existing cross correlation between Shake Shack and DTRGR 25 14 DEC 31, you can compare the effects of market volatilities on Shake Shack and DTRGR 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 DTRGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and DTRGR.
Diversification Opportunities for Shake Shack and DTRGR
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shake and DTRGR is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and DTRGR 25 14 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 25 14 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 DTRGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTRGR 25 14 has no effect on the direction of Shake Shack i.e., Shake Shack and DTRGR go up and down completely randomly.
Pair Corralation between Shake Shack and DTRGR
Given the investment horizon of 90 days Shake Shack is expected to generate 6.08 times more return on investment than DTRGR. However, Shake Shack is 6.08 times more volatile than DTRGR 25 14 DEC 31. It trades about 0.17 of its potential returns per unit of risk. DTRGR 25 14 DEC 31 is currently generating about 0.07 per unit of risk. If you would invest 12,356 in Shake Shack on September 4, 2024 and sell it today you would earn a total of 993.00 from holding Shake Shack or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Shake Shack vs. DTRGR 25 14 DEC 31
Performance |
| Timeline |
| Shake Shack |
| DTRGR 25 14 |
Shake Shack and DTRGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and DTRGR
The main advantage of trading using opposite Shake Shack and DTRGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, DTRGR 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 DTRGR will offset losses from the drop in DTRGR's long position.| Shake Shack vs. Hyatt Hotels | Shake Shack vs. Smart Share Global | Shake Shack vs. Sweetgreen | Shake Shack vs. Wyndham Hotels Resorts |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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