Correlation Between Cheesecake Factory and 78490FMG1
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By analyzing existing cross correlation between The Cheesecake Factory and US78490FMG18, you can compare the effects of market volatilities on Cheesecake Factory and 78490FMG1 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 78490FMG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and 78490FMG1.
Diversification Opportunities for Cheesecake Factory and 78490FMG1
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cheesecake and 78490FMG1 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and US78490FMG18 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US78490FMG18 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 78490FMG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US78490FMG18 has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and 78490FMG1 go up and down completely randomly.
Pair Corralation between Cheesecake Factory and 78490FMG1
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 1.49 times less return on investment than 78490FMG1. But when comparing it to its historical volatility, The Cheesecake Factory is 1.53 times less risky than 78490FMG1. It trades about 0.08 of its potential returns per unit of risk. US78490FMG18 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,675 in US78490FMG18 on September 14, 2024 and sell it today you would earn a total of 1,415 from holding US78490FMG18 or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 33.73% |
| Values | Daily Returns |
The Cheesecake Factory vs. US78490FMG18
Performance |
| Timeline |
| The Cheesecake Factory |
| US78490FMG18 |
Cheesecake Factory and 78490FMG1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and 78490FMG1
The main advantage of trading using opposite Cheesecake Factory and 78490FMG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, 78490FMG1 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 78490FMG1 will offset losses from the drop in 78490FMG1's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| 78490FMG1 vs. Kulicke and Soffa | 78490FMG1 vs. IPG Photonics | 78490FMG1 vs. Amkor Technology | 78490FMG1 vs. Everspin Technologies |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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