Correlation Between Cheesecake Factory and Origen Resources
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Origen Resources 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 Origen Resources 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 Origen Resources, you can compare the effects of market volatilities on Cheesecake Factory and Origen Resources 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 Origen Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Origen Resources.
Diversification Opportunities for Cheesecake Factory and Origen Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and Origen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Origen Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origen Resources 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 Origen Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origen Resources has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Origen Resources go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Origen Resources
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 20.22 times less return on investment than Origen Resources. But when comparing it to its historical volatility, The Cheesecake Factory is 20.45 times less risky than Origen Resources. It trades about 0.06 of its potential returns per unit of risk. Origen Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Origen Resources on September 12, 2024 and sell it today you would lose (10.90) from holding Origen Resources or give up 90.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
The Cheesecake Factory vs. Origen Resources
Performance |
| Timeline |
| The Cheesecake Factory |
| Origen Resources |
Cheesecake Factory and Origen Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Origen Resources
The main advantage of trading using opposite Cheesecake Factory and Origen Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Origen Resources 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 Origen Resources will offset losses from the drop in Origen Resources' long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Origen Resources vs. Dine Brands Global | Origen Resources vs. Ark Restaurants Corp | Origen Resources vs. Ryman Hospitality Properties | Origen Resources 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |