Correlation Between Shake Shack and EDPPL
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By analyzing existing cross correlation between Shake Shack and EDPPL 171 24 JAN 28, you can compare the effects of market volatilities on Shake Shack and EDPPL 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 EDPPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and EDPPL.
Diversification Opportunities for Shake Shack and EDPPL
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shake and EDPPL is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and EDPPL 171 24 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDPPL 171 24 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 EDPPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDPPL 171 24 has no effect on the direction of Shake Shack i.e., Shake Shack and EDPPL go up and down completely randomly.
Pair Corralation between Shake Shack and EDPPL
Given the investment horizon of 90 days Shake Shack is expected to generate 4.52 times more return on investment than EDPPL. However, Shake Shack is 4.52 times more volatile than EDPPL 171 24 JAN 28. It trades about 0.11 of its potential returns per unit of risk. EDPPL 171 24 JAN 28 is currently generating about -0.01 per unit of risk. If you would invest 6,190 in Shake Shack on September 15, 2024 and sell it today you would earn a total of 6,969 from holding Shake Shack or generate 112.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.34% |
| Values | Daily Returns |
Shake Shack vs. EDPPL 171 24 JAN 28
Performance |
| Timeline |
| Shake Shack |
| EDPPL 171 24 |
Shake Shack and EDPPL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and EDPPL
The main advantage of trading using opposite Shake Shack and EDPPL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, EDPPL 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 EDPPL will offset losses from the drop in EDPPL's long position.| Shake Shack vs. Dominos Pizza | Shake Shack vs. Papa Johns International | Shake Shack vs. Chipotle Mexican Grill | Shake Shack vs. Darden Restaurants |
| EDPPL vs. Amkor Technology | EDPPL vs. Elmos Semiconductor SE | EDPPL vs. Shake Shack | EDPPL vs. Arm Holdings plc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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