Correlation Between Cheesecake Factory and LOWES
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By analyzing existing cross correlation between The Cheesecake Factory and LOWES PANIES INC, you can compare the effects of market volatilities on Cheesecake Factory and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and LOWES.
Diversification Opportunities for Cheesecake Factory and LOWES
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheesecake and LOWES is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and LOWES go up and down completely randomly.
Pair Corralation between Cheesecake Factory and LOWES
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 2.16 times more return on investment than LOWES. However, Cheesecake Factory is 2.16 times more volatile than LOWES PANIES INC. It trades about 0.08 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.04 per unit of risk. If you would invest 3,422 in The Cheesecake Factory on September 14, 2024 and sell it today you would earn a total of 1,535 from holding The Cheesecake Factory or generate 44.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.79% |
| Values | Daily Returns |
The Cheesecake Factory vs. LOWES PANIES INC
Performance |
| Timeline |
| The Cheesecake Factory |
| LOWES PANIES INC |
Cheesecake Factory and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and LOWES
The main advantage of trading using opposite Cheesecake Factory and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| LOWES vs. Summit Midstream | LOWES vs. Kinetik Holdings | LOWES vs. United Utilities Group | LOWES vs. Verra Mobility Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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