Correlation Between 225401AT5 and Shake Shack
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By analyzing existing cross correlation between CS 1305 02 FEB 27 and Shake Shack, you can compare the effects of market volatilities on 225401AT5 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 225401AT5 with a short position of Shake Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of 225401AT5 and Shake Shack.
Diversification Opportunities for 225401AT5 and Shake Shack
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 225401AT5 and Shake is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CS 1305 02 FEB 27 and Shake Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shake Shack and 225401AT5 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 CS 1305 02 FEB 27 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 225401AT5 i.e., 225401AT5 and Shake Shack go up and down completely randomly.
Pair Corralation between 225401AT5 and Shake Shack
Assuming the 90 days trading horizon CS 1305 02 FEB 27 is expected to under-perform the Shake Shack. In addition to that, 225401AT5 is 1.97 times more volatile than Shake Shack. It trades about -0.04 of its total potential returns per unit of risk. Shake Shack is currently generating about 0.26 per unit of volatility. If you would invest 11,362 in Shake Shack on August 30, 2024 and sell it today you would earn a total of 1,873 from holding Shake Shack or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
CS 1305 02 FEB 27 vs. Shake Shack
Performance |
| Timeline |
| CS 1305 02 |
| Shake Shack |
225401AT5 and Shake Shack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 225401AT5 and Shake Shack
The main advantage of trading using opposite 225401AT5 and Shake Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 225401AT5 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.| 225401AT5 vs. AEP TEX INC | 225401AT5 vs. US BANK NATIONAL | 225401AT5 vs. PayPal Holdings | 225401AT5 vs. IONQ Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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