Correlation Between Cheesecake Factory and Presidio Property
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Presidio Property 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 Presidio Property 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 Presidio Property Trust, you can compare the effects of market volatilities on Cheesecake Factory and Presidio Property 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 Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Presidio Property.
Diversification Opportunities for Cheesecake Factory and Presidio Property
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheesecake and Presidio is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust 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 Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Presidio Property go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Presidio Property
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 0.46 times more return on investment than Presidio Property. However, The Cheesecake Factory is 2.2 times less risky than Presidio Property. It trades about 0.09 of its potential returns per unit of risk. Presidio Property Trust is currently generating about 0.0 per unit of risk. If you would invest 3,210 in The Cheesecake Factory on August 29, 2024 and sell it today you would earn a total of 1,675 from holding The Cheesecake Factory or generate 52.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. Presidio Property Trust
Performance |
| Timeline |
| The Cheesecake Factory |
| Presidio Property Trust |
Cheesecake Factory and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Presidio Property
The main advantage of trading using opposite Cheesecake Factory and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Presidio Property 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 Presidio Property will offset losses from the drop in Presidio Property's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| Presidio Property vs. VICI Properties | Presidio Property vs. Essential Properties Realty | Presidio Property vs. Empire State Realty | Presidio Property vs. American Assets Trust |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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