Correlation Between Cheesecake Factory and Femasys
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Femasys 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 Femasys 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 Femasys, you can compare the effects of market volatilities on Cheesecake Factory and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Femasys.
Diversification Opportunities for Cheesecake Factory and Femasys
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheesecake and Femasys is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Femasys go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Femasys
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 6.83 times less return on investment than Femasys. But when comparing it to its historical volatility, The Cheesecake Factory is 8.67 times less risky than Femasys. It trades about 0.05 of its potential returns per unit of risk. Femasys is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 108.00 in Femasys on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Femasys or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Femasys
Performance |
| Timeline |
| The Cheesecake Factory |
| Femasys |
Cheesecake Factory and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Femasys
The main advantage of trading using opposite Cheesecake Factory and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.| Cheesecake Factory vs. The Wendys Co | Cheesecake Factory vs. Shake Shack | Cheesecake Factory vs. Papa Johns International | Cheesecake Factory vs. Darden Restaurants |
| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
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..
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