Correlation Between Cheesecake Factory and Capital Senior
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Capital Senior 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 Capital Senior 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 Capital Senior Living, you can compare the effects of market volatilities on Cheesecake Factory and Capital Senior 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 Capital Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Capital Senior.
Diversification Opportunities for Cheesecake Factory and Capital Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Capital Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Senior Living 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 Capital Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Senior Living has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Capital Senior go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Capital Senior
If you would invest 4,596 in The Cheesecake Factory on September 1, 2024 and sell it today you would earn a total of 468.00 from holding The Cheesecake Factory or generate 10.18% 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. Capital Senior Living
Performance |
| Timeline |
| The Cheesecake Factory |
| Capital Senior Living |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cheesecake Factory and Capital Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Capital Senior
The main advantage of trading using opposite Cheesecake Factory and Capital Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Capital Senior 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 Capital Senior will offset losses from the drop in Capital Senior's long position.| Cheesecake Factory vs. The Wendys Co | Cheesecake Factory vs. Shake Shack | Cheesecake Factory vs. Papa Johns International | Cheesecake Factory vs. Darden Restaurants |
| Capital Senior vs. The Cheesecake Factory | Capital Senior vs. Alaska Air Group | Capital Senior vs. Sweetgreen | Capital Senior vs. Mesa Air 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |