Correlation Between QUALCOMM and Shake Shack
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By analyzing existing cross correlation between QUALCOMM INC 325 and Shake Shack, you can compare the effects of market volatilities on QUALCOMM 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 QUALCOMM with a short position of Shake Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUALCOMM and Shake Shack.
Diversification Opportunities for QUALCOMM and Shake Shack
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between QUALCOMM and Shake is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding QUALCOMM INC 325 and Shake Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shake Shack and QUALCOMM 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 QUALCOMM INC 325 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 QUALCOMM i.e., QUALCOMM and Shake Shack go up and down completely randomly.
Pair Corralation between QUALCOMM and Shake Shack
Assuming the 90 days trading horizon QUALCOMM is expected to generate 35.33 times less return on investment than Shake Shack. But when comparing it to its historical volatility, QUALCOMM INC 325 is 6.18 times less risky than Shake Shack. It trades about 0.01 of its potential returns per unit of risk. Shake Shack is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,249 in Shake Shack on September 3, 2024 and sell it today you would earn a total of 3,124 from holding Shake Shack or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
QUALCOMM INC 325 vs. Shake Shack
Performance |
| Timeline |
| QUALCOMM INC 325 |
| Shake Shack |
QUALCOMM and Shake Shack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QUALCOMM and Shake Shack
The main advantage of trading using opposite QUALCOMM and Shake Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUALCOMM 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.| QUALCOMM vs. AEP TEX INC | QUALCOMM vs. US BANK NATIONAL | QUALCOMM vs. Jackson Financial | QUALCOMM vs. Brera Holdings PLC |
| Shake Shack vs. Highway Holdings Limited | Shake Shack vs. QCR Holdings | Shake Shack vs. Partner Communications | Shake Shack vs. Acumen Pharmaceuticals |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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