Correlation Between Cheesecake Factory and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Cheesecake Factory and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Proficient Auto.
Diversification Opportunities for Cheesecake Factory and Proficient Auto
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cheesecake and Proficient is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Proficient Auto go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Proficient Auto
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 4.72 times less return on investment than Proficient Auto. But when comparing it to its historical volatility, The Cheesecake Factory is 1.43 times less risky than Proficient Auto. It trades about 0.17 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest 784.00 in Proficient Auto Logistics, on October 25, 2024 and sell it today you would earn a total of 256.00 from holding Proficient Auto Logistics, or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Proficient Auto Logistics,
Performance |
| Timeline |
| The Cheesecake Factory |
| Proficient Auto Logi |
Cheesecake Factory and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Proficient Auto
The main advantage of trading using opposite Cheesecake Factory and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Proficient Auto vs. Boot Barn Holdings | Proficient Auto vs. The Cheesecake Factory | Proficient Auto vs. Columbia Sportswear | Proficient Auto vs. Tandy Leather 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |