Correlation Between Cheesecake Factory and California-Engels
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and California-Engels 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 California-Engels 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 California Engels Mining, you can compare the effects of market volatilities on Cheesecake Factory and California-Engels 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 California-Engels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and California-Engels.
Diversification Opportunities for Cheesecake Factory and California-Engels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and California-Engels is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and California Engels Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Engels Mining 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 California-Engels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Engels Mining has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and California-Engels go up and down completely randomly.
Pair Corralation between Cheesecake Factory and California-Engels
If you would invest 3,716 in The Cheesecake Factory on October 25, 2024 and sell it today you would earn a total of 1,389 from holding The Cheesecake Factory or generate 37.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
The Cheesecake Factory vs. California Engels Mining
Performance |
| Timeline |
| The Cheesecake Factory |
| California Engels Mining |
Cheesecake Factory and California-Engels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and California-Engels
The main advantage of trading using opposite Cheesecake Factory and California-Engels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, California-Engels 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 California-Engels will offset losses from the drop in California-Engels' long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| California-Engels vs. CleanGo Innovations | California-Engels vs. WK Kellogg Co | California-Engels vs. Capital Clean Energy | California-Engels vs. National Beverage Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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