Correlation Between Shake Shack and 98372MAA3
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By analyzing existing cross correlation between Shake Shack and XHR LP 6375, you can compare the effects of market volatilities on Shake Shack and 98372MAA3 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 98372MAA3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and 98372MAA3.
Diversification Opportunities for Shake Shack and 98372MAA3
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shake and 98372MAA3 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and XHR LP 6375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XHR LP 6375 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 98372MAA3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XHR LP 6375 has no effect on the direction of Shake Shack i.e., Shake Shack and 98372MAA3 go up and down completely randomly.
Pair Corralation between Shake Shack and 98372MAA3
Given the investment horizon of 90 days Shake Shack is expected to generate 50.73 times less return on investment than 98372MAA3. But when comparing it to its historical volatility, Shake Shack is 41.34 times less risky than 98372MAA3. It trades about 0.09 of its potential returns per unit of risk. XHR LP 6375 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,880 in XHR LP 6375 on September 3, 2024 and sell it today you would earn a total of 119.00 from holding XHR LP 6375 or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.75% |
| Values | Daily Returns |
Shake Shack vs. XHR LP 6375
Performance |
| Timeline |
| Shake Shack |
| XHR LP 6375 |
Shake Shack and 98372MAA3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shake Shack and 98372MAA3
The main advantage of trading using opposite Shake Shack and 98372MAA3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, 98372MAA3 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 98372MAA3 will offset losses from the drop in 98372MAA3's long position.| Shake Shack vs. Highway Holdings Limited | Shake Shack vs. QCR Holdings | Shake Shack vs. Partner Communications | Shake Shack vs. Acumen Pharmaceuticals |
| 98372MAA3 vs. Supercom | 98372MAA3 vs. Texas Roadhouse | 98372MAA3 vs. Shake Shack | 98372MAA3 vs. Arrow 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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