Correlation Between Cheesecake Factory and Hudson Pacific
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Hudson Pacific 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 Hudson Pacific 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 Hudson Pacific Properties, you can compare the effects of market volatilities on Cheesecake Factory and Hudson Pacific 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 Hudson Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Hudson Pacific.
Diversification Opportunities for Cheesecake Factory and Hudson Pacific
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and Hudson is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Hudson Pacific Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Pacific Properties 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 Hudson Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Pacific Properties has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Hudson Pacific go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Hudson Pacific
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 0.55 times more return on investment than Hudson Pacific. However, The Cheesecake Factory is 1.81 times less risky than Hudson Pacific. It trades about 0.26 of its potential returns per unit of risk. Hudson Pacific Properties is currently generating about -0.06 per unit of risk. If you would invest 4,262 in The Cheesecake Factory on August 30, 2024 and sell it today you would earn a total of 712.00 from holding The Cheesecake Factory or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Hudson Pacific Properties
Performance |
| Timeline |
| The Cheesecake Factory |
| Hudson Pacific Properties |
Cheesecake Factory and Hudson Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Hudson Pacific
The main advantage of trading using opposite Cheesecake Factory and Hudson Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Hudson Pacific 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 Hudson Pacific will offset losses from the drop in Hudson Pacific's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Hudson Pacific vs. Boston Properties | Hudson Pacific vs. Douglas Emmett | Hudson Pacific vs. Kilroy Realty Corp | Hudson Pacific vs. Alexandria Real Estate |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |