Correlation Between Loop Media and Shake Shack
Can any of the company-specific risk be diversified away by investing in both Loop Media and Shake Shack at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Loop Media and Shake Shack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loop Media and Shake Shack, you can compare the effects of market volatilities on Loop Media 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 Loop Media with a short position of Shake Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loop Media and Shake Shack.
Diversification Opportunities for Loop Media and Shake Shack
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loop and Shake is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Loop Media and Shake Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shake Shack and Loop Media 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 Loop Media 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 Loop Media i.e., Loop Media and Shake Shack go up and down completely randomly.
Pair Corralation between Loop Media and Shake Shack
If you would invest (100.00) in Loop Media on December 26, 2024 and sell it today you would earn a total of 100.00 from holding Loop Media or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Loop Media vs. Shake Shack
Performance |
Timeline |
Loop Media |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Shake Shack |
Loop Media and Shake Shack Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loop Media and Shake Shack
The main advantage of trading using opposite Loop Media and Shake Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loop Media 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.Loop Media vs. Genuine Parts Co | Loop Media vs. Asbury Automotive Group | Loop Media vs. National Vision Holdings | Loop Media vs. NETGEAR |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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