Correlation Between 01882YAD8 and Shake Shack
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By analyzing existing cross correlation between LNT 36 01 MAR 32 and Shake Shack, you can compare the effects of market volatilities on 01882YAD8 and Shake Shack 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 01882YAD8 with a short position of Shake Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of 01882YAD8 and Shake Shack.
Diversification Opportunities for 01882YAD8 and Shake Shack
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 01882YAD8 and Shake is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding LNT 36 01 MAR 32 and Shake Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shake Shack and 01882YAD8 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 LNT 36 01 MAR 32 are associated (or correlated) with Shake Shack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shake Shack has no effect on the direction of 01882YAD8 i.e., 01882YAD8 and Shake Shack go up and down completely randomly.
Pair Corralation between 01882YAD8 and Shake Shack
Assuming the 90 days trading horizon LNT 36 01 MAR 32 is expected to under-perform the Shake Shack. But the bond apears to be less risky and, when comparing its historical volatility, LNT 36 01 MAR 32 is 1.16 times less risky than Shake Shack. The bond trades about -0.1 of its potential returns per unit of risk. The Shake Shack is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 11,426 in Shake Shack on August 29, 2024 and sell it today you would earn a total of 1,822 from holding Shake Shack or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.83% |
| Values | Daily Returns |
LNT 36 01 MAR 32 vs. Shake Shack
Performance |
| Timeline |
| LNT 36 01 |
| Shake Shack |
01882YAD8 and Shake Shack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 01882YAD8 and Shake Shack
The main advantage of trading using opposite 01882YAD8 and Shake Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 01882YAD8 position performs unexpectedly, Shake Shack 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 Shake Shack will offset losses from the drop in Shake Shack's long position.| 01882YAD8 vs. Shake Shack | 01882YAD8 vs. Hudson Pacific Properties | 01882YAD8 vs. Dennys Corp | 01882YAD8 vs. Sweetgreen |
| Shake Shack vs. Jack In The | Shake Shack vs. Potbelly Co | Shake Shack vs. BJs Restaurants | Shake Shack vs. One Group Hospitality |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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