Correlation Between Cheesecake Factory and One Group
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and One Group 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 One Group 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 One Group Hospitality, you can compare the effects of market volatilities on Cheesecake Factory and One Group 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 One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and One Group.
Diversification Opportunities for Cheesecake Factory and One Group
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cheesecake and One is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality 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 One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and One Group go up and down completely randomly.
Pair Corralation between Cheesecake Factory and One Group
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 0.52 times more return on investment than One Group. However, The Cheesecake Factory is 1.91 times less risky than One Group. It trades about 0.08 of its potential returns per unit of risk. One Group Hospitality is currently generating about 0.01 per unit of risk. If you would invest 3,559 in The Cheesecake Factory on December 4, 2024 and sell it today you would earn a total of 1,570 from holding The Cheesecake Factory or generate 44.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. One Group Hospitality
Performance |
| Timeline |
| The Cheesecake Factory |
| One Group Hospitality |
Cheesecake Factory and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and One Group
The main advantage of trading using opposite Cheesecake Factory and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| One Group vs. FAT Brands | One Group vs. Potbelly Co | One Group vs. BJs Restaurants | One Group vs. Rave Restaurant Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |