Correlation Between Cheesecake Factory and Boxed
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Boxed 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 Cheesecake Factory and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Cheesecake Factory and Boxed Inc, you can compare the effects of market volatilities on Cheesecake Factory and Boxed 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 Cheesecake Factory with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Boxed.
Diversification Opportunities for Cheesecake Factory and Boxed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and Boxed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and Cheesecake Factory 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 The Cheesecake Factory are associated (or correlated) with Boxed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxed Inc has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Boxed go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Boxed
If you would invest 4,301 in The Cheesecake Factory on August 29, 2024 and sell it today you would earn a total of 584.00 from holding The Cheesecake Factory or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Boxed Inc
Performance |
| Timeline |
| The Cheesecake Factory |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cheesecake Factory and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Boxed
The main advantage of trading using opposite Cheesecake Factory and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Boxed 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 Boxed will offset losses from the drop in Boxed's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Boxed vs. Sweetgreen | Boxed vs. Papaya Growth Opportunity | Boxed vs. The Cheesecake Factory | Boxed vs. Rave Restaurant Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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