Correlation Between Cheesecake Factory and 26442CAR5
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By analyzing existing cross correlation between The Cheesecake Factory and DUKE ENERGY CAROLINAS, you can compare the effects of market volatilities on Cheesecake Factory and 26442CAR5 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 26442CAR5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and 26442CAR5.
Diversification Opportunities for Cheesecake Factory and 26442CAR5
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cheesecake and 26442CAR5 is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and DUKE ENERGY CAROLINAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY CAROLINAS 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 26442CAR5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY CAROLINAS has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and 26442CAR5 go up and down completely randomly.
Pair Corralation between Cheesecake Factory and 26442CAR5
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 1.51 times more return on investment than 26442CAR5. However, Cheesecake Factory is 1.51 times more volatile than DUKE ENERGY CAROLINAS. It trades about 0.24 of its potential returns per unit of risk. DUKE ENERGY CAROLINAS is currently generating about -0.13 per unit of risk. If you would invest 4,556 in The Cheesecake Factory on September 2, 2024 and sell it today you would earn a total of 508.00 from holding The Cheesecake Factory or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
The Cheesecake Factory vs. DUKE ENERGY CAROLINAS
Performance |
| Timeline |
| The Cheesecake Factory |
| DUKE ENERGY CAROLINAS |
Cheesecake Factory and 26442CAR5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and 26442CAR5
The main advantage of trading using opposite Cheesecake Factory and 26442CAR5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, 26442CAR5 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 26442CAR5 will offset losses from the drop in 26442CAR5's long position.The idea behind The Cheesecake Factory and DUKE ENERGY CAROLINAS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 26442CAR5 vs. Mind Medicine | 26442CAR5 vs. Yum Brands | 26442CAR5 vs. First Watch Restaurant | 26442CAR5 vs. The Cheesecake Factory |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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