Correlation Between Cheesecake Factory and QBEAU
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By analyzing existing cross correlation between The Cheesecake Factory and QBEAU 5875, you can compare the effects of market volatilities on Cheesecake Factory and QBEAU 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 QBEAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and QBEAU.
Diversification Opportunities for Cheesecake Factory and QBEAU
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cheesecake and QBEAU is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and QBEAU 5875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBEAU 5875 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 QBEAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBEAU 5875 has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and QBEAU go up and down completely randomly.
Pair Corralation between Cheesecake Factory and QBEAU
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 9.85 times more return on investment than QBEAU. However, Cheesecake Factory is 9.85 times more volatile than QBEAU 5875. It trades about 0.26 of its potential returns per unit of risk. QBEAU 5875 is currently generating about -0.24 per unit of risk. If you would invest 4,529 in The Cheesecake Factory on September 3, 2024 and sell it today you would earn a total of 535.00 from holding The Cheesecake Factory or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. QBEAU 5875
Performance |
| Timeline |
| The Cheesecake Factory |
| QBEAU 5875 |
Cheesecake Factory and QBEAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and QBEAU
The main advantage of trading using opposite Cheesecake Factory and QBEAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, QBEAU 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 QBEAU will offset losses from the drop in QBEAU's long position.| Cheesecake Factory vs. Highway Holdings Limited | Cheesecake Factory vs. QCR Holdings | Cheesecake Factory vs. Partner Communications | Cheesecake Factory vs. Acumen Pharmaceuticals |
| QBEAU vs. Cedar Realty Trust | QBEAU vs. Black Hills | QBEAU vs. Comstock Holding Companies | QBEAU vs. MGIC Investment 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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