Correlation Between Shake Shack and 512807AN8
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By analyzing existing cross correlation between Shake Shack and LAM RESH P, you can compare the effects of market volatilities on Shake Shack and 512807AN8 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 512807AN8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and 512807AN8.
Diversification Opportunities for Shake Shack and 512807AN8
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shake and 512807AN8 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and LAM RESH P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAM RESH P 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 512807AN8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAM RESH P has no effect on the direction of Shake Shack i.e., Shake Shack and 512807AN8 go up and down completely randomly.
Pair Corralation between Shake Shack and 512807AN8
Given the investment horizon of 90 days Shake Shack is expected to generate 13.31 times more return on investment than 512807AN8. However, Shake Shack is 13.31 times more volatile than LAM RESH P. It trades about 0.09 of its potential returns per unit of risk. LAM RESH P is currently generating about 0.0 per unit of risk. If you would invest 4,489 in Shake Shack on September 13, 2024 and sell it today you would earn a total of 9,328 from holding Shake Shack or generate 207.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.5% |
| Values | Daily Returns |
Shake Shack vs. LAM RESH P
Performance |
| Timeline |
| Shake Shack |
| LAM RESH P |
Shake Shack and 512807AN8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and 512807AN8
The main advantage of trading using opposite Shake Shack and 512807AN8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, 512807AN8 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 512807AN8 will offset losses from the drop in 512807AN8'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 |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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