Correlation Between Cheesecake Factory and ENTERPRISE
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By analyzing existing cross correlation between The Cheesecake Factory and ENTERPRISE PRODS OPER, you can compare the effects of market volatilities on Cheesecake Factory and ENTERPRISE 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 ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and ENTERPRISE.
Diversification Opportunities for Cheesecake Factory and ENTERPRISE
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheesecake and ENTERPRISE is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and ENTERPRISE PRODS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODS OPER 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 ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODS OPER has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and ENTERPRISE go up and down completely randomly.
Pair Corralation between Cheesecake Factory and ENTERPRISE
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 1.28 times less return on investment than ENTERPRISE. But when comparing it to its historical volatility, The Cheesecake Factory is 1.29 times less risky than ENTERPRISE. It trades about 0.1 of its potential returns per unit of risk. ENTERPRISE PRODS OPER is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 11,031 in ENTERPRISE PRODS OPER on September 5, 2024 and sell it today you would earn a total of 3,437 from holding ENTERPRISE PRODS OPER or generate 31.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. ENTERPRISE PRODS OPER
Performance |
| Timeline |
| The Cheesecake Factory |
| ENTERPRISE PRODS OPER |
Cheesecake Factory and ENTERPRISE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and ENTERPRISE
The main advantage of trading using opposite Cheesecake Factory and ENTERPRISE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, ENTERPRISE 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 ENTERPRISE will offset losses from the drop in ENTERPRISE's long position.| Cheesecake Factory vs. Hyatt Hotels | Cheesecake Factory vs. Smart Share Global | Cheesecake Factory vs. Sweetgreen | Cheesecake Factory vs. Wyndham Hotels Resorts |
| ENTERPRISE vs. CAVA Group, | ENTERPRISE vs. Texas Roadhouse | ENTERPRISE vs. Sligro Food Group | ENTERPRISE 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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