Correlation Between Cheesecake Factory and Eastgate Biotech
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Eastgate Biotech 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 Eastgate Biotech 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 Eastgate Biotech Corp, you can compare the effects of market volatilities on Cheesecake Factory and Eastgate Biotech 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 Eastgate Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Eastgate Biotech.
Diversification Opportunities for Cheesecake Factory and Eastgate Biotech
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and Eastgate is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Eastgate Biotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastgate Biotech Corp 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 Eastgate Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastgate Biotech Corp has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Eastgate Biotech go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Eastgate Biotech
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 Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Cheesecake Factory vs. Eastgate Biotech Corp
Performance |
| Timeline |
| The Cheesecake Factory |
| Eastgate Biotech Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cheesecake Factory and Eastgate Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Eastgate Biotech
The main advantage of trading using opposite Cheesecake Factory and Eastgate Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Eastgate Biotech 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 Eastgate Biotech will offset losses from the drop in Eastgate Biotech's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Eastgate Biotech vs. Weyco Group | Eastgate Biotech vs. Avient Corp | Eastgate Biotech vs. CF Industries Holdings | Eastgate Biotech vs. Cheche Group Class |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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