Correlation Between Shake Shack and WELLTOWER
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By analyzing existing cross correlation between Shake Shack and WELLTOWER INC 425, you can compare the effects of market volatilities on Shake Shack and WELLTOWER 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 WELLTOWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and WELLTOWER.
Diversification Opportunities for Shake Shack and WELLTOWER
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shake and WELLTOWER is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and WELLTOWER INC 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLTOWER INC 425 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 WELLTOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLTOWER INC 425 has no effect on the direction of Shake Shack i.e., Shake Shack and WELLTOWER go up and down completely randomly.
Pair Corralation between Shake Shack and WELLTOWER
Given the investment horizon of 90 days Shake Shack is expected to generate 15.51 times more return on investment than WELLTOWER. However, Shake Shack is 15.51 times more volatile than WELLTOWER INC 425. It trades about 0.11 of its potential returns per unit of risk. WELLTOWER INC 425 is currently generating about -0.01 per unit of risk. If you would invest 9,659 in Shake Shack on September 3, 2024 and sell it today you would earn a total of 3,714 from holding Shake Shack or generate 38.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
Shake Shack vs. WELLTOWER INC 425
Performance |
| Timeline |
| Shake Shack |
| WELLTOWER INC 425 |
Shake Shack and WELLTOWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and WELLTOWER
The main advantage of trading using opposite Shake Shack and WELLTOWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, WELLTOWER 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 WELLTOWER will offset losses from the drop in WELLTOWER's long position.| Shake Shack vs. Highway Holdings Limited | Shake Shack vs. QCR Holdings | Shake Shack vs. Partner Communications | Shake Shack vs. Acumen Pharmaceuticals |
| WELLTOWER vs. Chipotle Mexican Grill | WELLTOWER vs. Shake Shack | WELLTOWER vs. Dine Brands Global | WELLTOWER vs. RBC Bearings Incorporated |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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