Correlation Between Cheesecake Factory and Pinstripes Holdings
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Pinstripes Holdings 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 Pinstripes Holdings 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 Pinstripes Holdings, you can compare the effects of market volatilities on Cheesecake Factory and Pinstripes Holdings 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 Pinstripes Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Pinstripes Holdings.
Diversification Opportunities for Cheesecake Factory and Pinstripes Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cheesecake and Pinstripes is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Pinstripes Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinstripes Holdings 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 Pinstripes Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinstripes Holdings has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Pinstripes Holdings go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Pinstripes Holdings
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 1.48 times less return on investment than Pinstripes Holdings. But when comparing it to its historical volatility, The Cheesecake Factory is 3.91 times less risky than Pinstripes Holdings. It trades about 0.29 of its potential returns per unit of risk. Pinstripes Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Pinstripes Holdings on November 5, 2024 and sell it today you would earn a total of 5.00 from holding Pinstripes Holdings or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Pinstripes Holdings
Performance |
| Timeline |
| The Cheesecake Factory |
| Pinstripes Holdings |
Cheesecake Factory and Pinstripes Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Pinstripes Holdings
The main advantage of trading using opposite Cheesecake Factory and Pinstripes Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Pinstripes Holdings 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 Pinstripes Holdings will offset losses from the drop in Pinstripes Holdings' long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Pinstripes Holdings vs. Altria Group | Pinstripes Holdings vs. Air Products and | Pinstripes Holdings vs. Chemours Co | Pinstripes Holdings vs. Compania Cervecerias Unidas |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings 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 | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |