Correlation Between Hologic and Shake Shack
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By analyzing existing cross correlation between Hologic 4625 percent and Shake Shack, you can compare the effects of market volatilities on Hologic 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 Hologic with a short position of Shake Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and Shake Shack.
Diversification Opportunities for Hologic and Shake Shack
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hologic and Shake is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hologic 4625 percent and Shake Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shake Shack and Hologic 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 Hologic 4625 percent 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 Hologic i.e., Hologic and Shake Shack go up and down completely randomly.
Pair Corralation between Hologic and Shake Shack
Assuming the 90 days trading horizon Hologic 4625 percent is expected to under-perform the Shake Shack. But the bond apears to be less risky and, when comparing its historical volatility, Hologic 4625 percent is 7.82 times less risky than Shake Shack. The bond trades about -0.26 of its potential returns per unit of risk. The Shake Shack is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12,942 in Shake Shack on September 25, 2024 and sell it today you would earn a total of 261.00 from holding Shake Shack or generate 2.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 85.71% |
Values | Daily Returns |
Hologic 4625 percent vs. Shake Shack
Performance |
Timeline |
Hologic 4625 percent |
Shake Shack |
Hologic and Shake Shack Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hologic and Shake Shack
The main advantage of trading using opposite Hologic and Shake Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic 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.Hologic vs. Shake Shack | Hologic vs. Kura Sushi USA | Hologic vs. Dennys Corp | Hologic vs. Everspin Technologies |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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