Correlation Between Cheesecake Factory and EcoGraf
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and EcoGraf 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 EcoGraf 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 EcoGraf Limited, you can compare the effects of market volatilities on Cheesecake Factory and EcoGraf 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 EcoGraf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and EcoGraf.
Diversification Opportunities for Cheesecake Factory and EcoGraf
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and EcoGraf is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and EcoGraf Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EcoGraf Limited 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 EcoGraf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EcoGraf Limited has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and EcoGraf go up and down completely randomly.
Pair Corralation between Cheesecake Factory and EcoGraf
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 0.44 times more return on investment than EcoGraf. However, The Cheesecake Factory is 2.26 times less risky than EcoGraf. It trades about 0.06 of its potential returns per unit of risk. EcoGraf Limited is currently generating about -0.06 per unit of risk. If you would invest 2,993 in The Cheesecake Factory on September 12, 2024 and sell it today you would earn a total of 2,085 from holding The Cheesecake Factory or generate 69.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
The Cheesecake Factory vs. EcoGraf Limited
Performance |
| Timeline |
| The Cheesecake Factory |
| EcoGraf Limited |
Cheesecake Factory and EcoGraf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and EcoGraf
The main advantage of trading using opposite Cheesecake Factory and EcoGraf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, EcoGraf 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 EcoGraf will offset losses from the drop in EcoGraf's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| EcoGraf vs. Keurig Dr Pepper | EcoGraf vs. RCI Hospitality Holdings | EcoGraf vs. Anheuser Busch Inbev | EcoGraf vs. The Cheesecake Factory |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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