Correlation Between Shake Shack and DTRGR
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By analyzing existing cross correlation between Shake Shack and DTRGR 35 07 APR 25, 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
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shake and DTRGR is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and DTRGR 35 07 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 35 07 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 35 07 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 55.3 times more return on investment than DTRGR. However, Shake Shack is 55.3 times more volatile than DTRGR 35 07 APR 25. It trades about 0.12 of its potential returns per unit of risk. DTRGR 35 07 APR 25 is currently generating about 0.17 per unit of risk. If you would invest 13,073 in Shake Shack on September 12, 2024 and sell it today you would earn a total of 744.00 from holding Shake Shack or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 31.82% |
| Values | Daily Returns |
Shake Shack vs. DTRGR 35 07 APR 25
Performance |
| Timeline |
| Shake Shack |
| DTRGR 35 07 |
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. Noble Romans | Shake Shack vs. Flanigans Enterprises | Shake Shack vs. FAT Brands | Shake Shack vs. El Pollo Loco |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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