Correlation Between Shake Shack and QUALCOMM
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By analyzing existing cross correlation between Shake Shack and QUALCOMM INC 43, you can compare the effects of market volatilities on Shake Shack and QUALCOMM 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 QUALCOMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and QUALCOMM.
Diversification Opportunities for Shake Shack and QUALCOMM
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shake and QUALCOMM is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and QUALCOMM INC 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUALCOMM INC 43 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 QUALCOMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUALCOMM INC 43 has no effect on the direction of Shake Shack i.e., Shake Shack and QUALCOMM go up and down completely randomly.
Pair Corralation between Shake Shack and QUALCOMM
Given the investment horizon of 90 days Shake Shack is expected to under-perform the QUALCOMM. In addition to that, Shake Shack is 3.23 times more volatile than QUALCOMM INC 43. It trades about -0.11 of its total potential returns per unit of risk. QUALCOMM INC 43 is currently generating about -0.11 per unit of volatility. If you would invest 8,346 in QUALCOMM INC 43 on December 1, 2024 and sell it today you would lose (280.00) from holding QUALCOMM INC 43 or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shake Shack vs. QUALCOMM INC 43
Performance |
| Timeline |
| Shake Shack |
| QUALCOMM INC 43 |
Shake Shack and QUALCOMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and QUALCOMM
The main advantage of trading using opposite Shake Shack and QUALCOMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, QUALCOMM 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 QUALCOMM will offset losses from the drop in QUALCOMM's long position.| Shake Shack vs. Dominos Pizza Common | Shake Shack vs. Papa Johns International | Shake Shack vs. Chipotle Mexican Grill | Shake Shack vs. Darden Restaurants |
| QUALCOMM vs. Amkor Technology | QUALCOMM vs. Aegon NV ADR | QUALCOMM vs. Everspin Technologies | QUALCOMM vs. Renesas Electronics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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