Correlation Between Cheesecake Factory and Diguang Intl
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Diguang Intl 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 Diguang Intl 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 Diguang Intl Dev, you can compare the effects of market volatilities on Cheesecake Factory and Diguang Intl 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 Diguang Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Diguang Intl.
Diversification Opportunities for Cheesecake Factory and Diguang Intl
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cheesecake and Diguang is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Diguang Intl Dev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diguang Intl Dev 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 Diguang Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diguang Intl Dev has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Diguang Intl go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Diguang Intl
If you would invest 4,850 in The Cheesecake Factory on November 3, 2024 and sell it today you would earn a total of 765.00 from holding The Cheesecake Factory or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Cheesecake Factory vs. Diguang Intl Dev
Performance |
| Timeline |
| The Cheesecake Factory |
| Diguang Intl Dev |
Cheesecake Factory and Diguang Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Diguang Intl
The main advantage of trading using opposite Cheesecake Factory and Diguang Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Diguang Intl 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 Diguang Intl will offset losses from the drop in Diguang Intl's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Diguang Intl vs. Lasertec | Diguang Intl vs. Tokyo Electron Ltd | Diguang Intl vs. Asm Pacific Technology | Diguang Intl vs. Sumco Corp ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |