Correlation Between Cheesecake Factory and Supercom
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Supercom 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 Supercom 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 Supercom, you can compare the effects of market volatilities on Cheesecake Factory and Supercom 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 Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Supercom.
Diversification Opportunities for Cheesecake Factory and Supercom
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cheesecake and Supercom is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom 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 Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Supercom go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Supercom
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 4.7 times less return on investment than Supercom. But when comparing it to its historical volatility, The Cheesecake Factory is 4.54 times less risky than Supercom. It trades about 0.13 of its potential returns per unit of risk. Supercom is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 269.00 in Supercom on November 28, 2024 and sell it today you would earn a total of 582.00 from holding Supercom or generate 216.36% 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. Supercom
Performance |
| Timeline |
| The Cheesecake Factory |
| Supercom |
Cheesecake Factory and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Supercom
The main advantage of trading using opposite Cheesecake Factory and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |