Correlation Between Shake Shack and 756109BR4
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By analyzing existing cross correlation between Shake Shack and O 485 15 MAR 30, you can compare the effects of market volatilities on Shake Shack and 756109BR4 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 756109BR4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and 756109BR4.
Diversification Opportunities for Shake Shack and 756109BR4
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shake and 756109BR4 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and O 485 15 MAR 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 756109BR4 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 756109BR4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 756109BR4 has no effect on the direction of Shake Shack i.e., Shake Shack and 756109BR4 go up and down completely randomly.
Pair Corralation between Shake Shack and 756109BR4
Given the investment horizon of 90 days Shake Shack is expected to generate 7.62 times more return on investment than 756109BR4. However, Shake Shack is 7.62 times more volatile than O 485 15 MAR 30. It trades about 0.14 of its potential returns per unit of risk. O 485 15 MAR 30 is currently generating about -0.23 per unit of risk. If you would invest 11,426 in Shake Shack on August 27, 2024 and sell it today you would earn a total of 875.00 from holding Shake Shack or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shake Shack vs. O 485 15 MAR 30
Performance |
| Timeline |
| Shake Shack |
| 756109BR4 |
Shake Shack and 756109BR4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and 756109BR4
The main advantage of trading using opposite Shake Shack and 756109BR4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, 756109BR4 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 756109BR4 will offset losses from the drop in 756109BR4'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 |
| 756109BR4 vs. Freedom Bank of | 756109BR4 vs. Ryman Hospitality Properties | 756109BR4 vs. Shake Shack | 756109BR4 vs. The Wendys Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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