Correlation Between Cheesecake Factory and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Boyd Gaming 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 Boyd Gaming 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 Boyd Gaming, you can compare the effects of market volatilities on Cheesecake Factory and Boyd Gaming 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 Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Boyd Gaming.
Diversification Opportunities for Cheesecake Factory and Boyd Gaming
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cheesecake and Boyd is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming 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 Boyd Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Gaming has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Boyd Gaming go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Boyd Gaming
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 2.3 times more return on investment than Boyd Gaming. However, Cheesecake Factory is 2.3 times more volatile than Boyd Gaming. It trades about 0.26 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.08 per unit of risk. If you would invest 4,262 in The Cheesecake Factory on August 30, 2024 and sell it today you would earn a total of 712.00 from holding The Cheesecake Factory or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Boyd Gaming
Performance |
| Timeline |
| The Cheesecake Factory |
| Boyd Gaming |
Cheesecake Factory and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Boyd Gaming
The main advantage of trading using opposite Cheesecake Factory and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Boyd Gaming 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 Boyd Gaming will offset losses from the drop in Boyd Gaming's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Boyd Gaming vs. MGM Resorts International | Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Wynn Resorts Limited | Boyd Gaming vs. Penn National Gaming |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |