Correlation Between Cheesecake Factory and Paysafe
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Paysafe 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 Paysafe 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 Paysafe, you can compare the effects of market volatilities on Cheesecake Factory and Paysafe 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 Paysafe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Paysafe.
Diversification Opportunities for Cheesecake Factory and Paysafe
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cheesecake and Paysafe is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Paysafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe 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 Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Paysafe go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Paysafe
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 0.36 times more return on investment than Paysafe. However, The Cheesecake Factory is 2.78 times less risky than Paysafe. It trades about 0.15 of its potential returns per unit of risk. Paysafe is currently generating about 0.03 per unit of risk. If you would invest 5,183 in The Cheesecake Factory on November 27, 2024 and sell it today you would earn a total of 324.00 from holding The Cheesecake Factory or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Paysafe
Performance |
| Timeline |
| The Cheesecake Factory |
| Paysafe |
Cheesecake Factory and Paysafe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Paysafe
The main advantage of trading using opposite Cheesecake Factory and Paysafe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Paysafe 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 Paysafe will offset losses from the drop in Paysafe's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Paysafe vs. Skillz Platform | Paysafe vs. SoFi Technologies | Paysafe vs. Clover Health Investments | Paysafe vs. Opendoor Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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