Correlation Between Shake Shack and Immunoprecise Antibodies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Shake Shack and Immunoprecise Antibodies 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 Shake Shack and Immunoprecise Antibodies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shake Shack and Immunoprecise Antibodies, you can compare the effects of market volatilities on Shake Shack and Immunoprecise Antibodies 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 Shake Shack with a short position of Immunoprecise Antibodies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shake Shack and Immunoprecise Antibodies.

Diversification Opportunities for Shake Shack and Immunoprecise Antibodies

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Shake and Immunoprecise is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shake Shack and Immunoprecise Antibodies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunoprecise Antibodies and Shake Shack 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 Shake Shack are associated (or correlated) with Immunoprecise Antibodies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunoprecise Antibodies has no effect on the direction of Shake Shack i.e., Shake Shack and Immunoprecise Antibodies go up and down completely randomly.

Pair Corralation between Shake Shack and Immunoprecise Antibodies

Given the investment horizon of 90 days Shake Shack is expected to under-perform the Immunoprecise Antibodies. But the stock apears to be less risky and, when comparing its historical volatility, Shake Shack is 1.27 times less risky than Immunoprecise Antibodies. The stock trades about -0.03 of its potential returns per unit of risk. The Immunoprecise Antibodies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  605.00  in Immunoprecise Antibodies on September 6, 2022 and sell it today you would lose (74.00)  from holding Immunoprecise Antibodies or give up 12.23% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.63%
ValuesDaily Returns

Shake Shack  vs.  Immunoprecise Antibodies

 Performance (%) 
       Timeline  
Shake Shack 
Shake Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Shake Shack are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly sluggish basic indicators, Shake Shack demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Shake Price Channel

Immunoprecise Antibodies 
Immunoprecise Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Immunoprecise Antibodies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Immunoprecise Antibodies sustained solid returns over the last few months and may actually be approaching a breakup point.

Immunoprecise Price Channel

Shake Shack and Immunoprecise Antibodies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shake Shack and Immunoprecise Antibodies

The main advantage of trading using opposite Shake Shack and Immunoprecise Antibodies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shake Shack position performs unexpectedly, Immunoprecise Antibodies 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 Immunoprecise Antibodies will offset losses from the drop in Immunoprecise Antibodies' long position.
Shake Shack vs. Bright Horizons Family
Shake Shack vs. Bluegreen Vacations Holding
Shake Shack vs. Choice Hotels International
The idea behind Shake Shack and Immunoprecise Antibodies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Immunoprecise Antibodies vs. Apexigen
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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go